Moderate

Which of the following statements about microeconomics and macroeconomics is not true ?

Correct answer: A. The study of very large industries is a topic within macroeconomics

  • A. The study of very large industries is a topic within macroeconomics
  • B. Macroeconomics is concerned with economy-wide phenomena
  • C. Microeconomics is a building block for macroeconomics
  • D. Microeconomics and macroeconomics cannot be entirely separated

Explanation

Microeconomics studies individual consumers, firms, and industries, including very large industries; size alone does not make an issue macroeconomic. Macroeconomics instead focuses on economy-wide aggregates, while the two fields remain interrelated.

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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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