Microeconomics studies the allocation of
A) decision makers.
B) scarce resources.
C) models.
D) unlimited resources.

Question

Quizplus · Accepted Answer

Microeconomics is concerned with the allocation of scarce resources among various competing uses. It analyzes the behavior of individuals, households, and firms to understand how they make decisions regarding production, consumption, and exchange of goods and services in a market economy where resources are limited. It is based on the assumption that resources are scarce and must be allocated efficiently to maximize social welfare. Therefore, option B is the correct answer.

Microeconomics Studies the Allocation of