What is microeconomics?
Understand the Problem
The question is asking for a definition or explanation of microeconomics, which is a branch of economics that studies individual agents and markets, focusing on the behavior of consumers and firms and how they interact in various market structures.
Answer
Microeconomics studies the behavior of individuals, households, and firms regarding resource allocation.
Microeconomics is a branch of economics that studies the behavior of individuals, households, and firms in making decisions regarding the allocation of scarce resources.
Answer for screen readers
Microeconomics is a branch of economics that studies the behavior of individuals, households, and firms in making decisions regarding the allocation of scarce resources.
More Information
Microeconomics contrasts with macroeconomics, which looks at the economic behavior and performance of entire economies or large sectors.
Tips
A common mistake is to confuse microeconomics with macroeconomics. Microeconomics focuses on individual and firm-level decisions, while macroeconomics looks at the economy as a whole.
Sources
- Microeconomics Definition, Uses, and Concepts - Investopedia - investopedia.com
- Microeconomics - Wikipedia - en.wikipedia.org
- Microeconomics | Definition, Topics & Examples - Lesson - Study.com - study.com
