What area of economic study is most concerned with the determination of prices in the market for automobiles?
A) microeconomics
B) normative economics
C) macroeconomics
D) positive economics

Question

Quizplus · Accepted Answer

Microeconomics is concerned with the behavior of individual consumers and producers and how they interact in markets, including the determination of prices for specific goods like automobiles. Normative economics is concerned with what ought to be, rather than what is, and is not directly related to the determination of prices. Macroeconomics is concerned with the overall performance of the economy and aggregates such as gross domestic product and inflation. Positive economics is the analysis of how the economy actually works, including the determination of prices, but it is not as specific to the market for automobiles as microeconomics.

What Area of Economic Study Is Most Concerned with the Determination