The basic difference between macroeconomics and microeconomics is:
A) microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.
B) microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms.
C) microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
D) microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

Question

Quizplus · Accepted Answer

Microeconomics deals with the behavior of individual consumers and firms, analyzing how they make decisions and how these decisions affect supply and demand for goods and services. Macroeconomics, on the other hand, looks at the economy as a whole, focusing on aggregate measures such as GDP, unemployment rates, and inflation to understand the overall performance and health of the economic system.

The Basic Difference Between Macroeconomics and Microeconomics Is