What is microeconomics?
Understand the Problem
The question is asking for a definition of microeconomics. Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.
Answer
Microeconomics studies decisions of individuals and businesses about resource allocation.
Microeconomics is the study of decisions made by individuals, households, and businesses regarding the allocation of resources.
Answer for screen readers
Microeconomics is the study of decisions made by individuals, households, and businesses regarding the allocation of resources.
More Information
Microeconomics helps us understand how individuals and firms make decisions in response to changes in price, incentives, and production.
Tips
A common mistake is confusing microeconomics with macroeconomics, which studies the overall economy rather than individual units.
Sources
- Microeconomics Definition, Uses, and Concepts - Investopedia - investopedia.com
- Microeconomics - Wikipedia - en.wikipedia.org
- Introduction to microeconomics | ACCA Global - accaglobal.com
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