Which of the following statements about microeconomics is the most accurate?
A) It is a "positive" science, whereas macroeconomics is a "normative" science.
B) It provides an overall view of the economy and how it functions.
C) It explores the behaviour of individual consumers and firms when confronted with scarcity.
D) It examines the aggregate behaviour of consumers and firms when confronted with scarcity.

Question

Quizplus · Accepted Answer

Microeconomics focuses on the behaviour of individual consumers and firms, examining how they make decisions in the face of scarcity. It does not provide an overall view of the economy like macroeconomics does. Option A is incorrect because both micro and macroeconomics can be both positive and normative sciences. Option D is incorrect because aggregate behaviour falls under the domain of macroeconomics.

Which of the Following Statements About Microeconomics Is the Most