The branch of economics 'Microeconomics' deals with______________?
Correct answer: A. small units, including individual companies and small group of consumers
- A. small units, including individual companies and small group of consumers
- B. Economics of homes
- C. Economics of stock market
- D. Economics of provinces
Explanation
Microeconomics studies individual decision-making units, such as households, consumers, firms, and particular markets. The economy as a whole is studied under macroeconomics, not by focusing only on provinces or stock markets.
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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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