Microeconomics Quiz

Microeconomics focuses on the study of individual markets, sectors, or industries as opposed to the national economy as a whole, which is studied in macroeconomics.

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.

Microeconomics shows conditions under which free markets lead to desirable allocations.

<p>Macroeconomics deals with the issues of growth, inflation, and unemployment—and with national policies relating to these issues.</p> Signup and view all the answers

<p>Much of modern macroeconomic theories has been built upon microfoundations—i.e., based upon basic assumptions about micro-level behavior.</p> Signup and view all the answers