Microeconomics Quiz

Microeconomics vs Macroeconomics

• Microeconomics primarily analyzes the behavior and decision-making of individual economic units, such as households, firms, and markets.
• Macroeconomics focuses on the economy as a whole, studying aggregated indicators such as GDP, inflation, and unemployment.

Normative vs Positive Economics

• The distinction within economics that relates to 'what ought to be' is normative economics, which involves value judgments and policy recommendations.
• Positive economics, on the other hand, focuses on describing and analyzing economic phenomena without making value judgments.

Behavioral Economics

• Behavioral economics focuses on understanding how psychological, social, and emotional factors influence the economic decisions of individuals and institutions.

Macroeconomic Elements

• The broad elements analyzed in macroeconomics include national income, output, employment, inflation, and economic growth, as well as the factors that affect these variables, such as fiscal and monetary policies.