Moderate

In microeconomics the household is defined as_______________?

Correct answer: C. everyone who lives under one roof

  • A. the nuclear family
  • B. the extended family
  • C. everyone who lives under one roof
  • D. all of the above

Explanation

In basic microeconomics, a household is treated as the people living together who make consumption and resource-supply decisions, commonly simplified as everyone under one roof. It is an economic unit, not strictly only a nuclear or extended family.

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About Microeconomics

Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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