Questions and Answers
What is the focus of microeconomics?
Microeconomics focuses on the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.
What is the goal of microeconomics?
One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses.
What does microeconomics analyze?
Microeconomics analyzes market failure, where markets fail to produce efficient results.
What does macroeconomics focus on?
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What is the difference between microeconomics and macroeconomics?
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