How do microeconomics and macroeconomics differ?
A) Microeconomics is concerned with consumer behaviour, while macroeconomics is concerned with firm behaviour.
B) Microeconomics utilizes positive economic analysis, while macroeconomics utilizes normative economic analysis.
C) Microeconomics studies aggregate decision making, while macroeconomics examines individual decision making.
D) Microeconomics studies individual decision making, while macroeconomics examines aggregate decision making.

Question

Quizplus · Accepted Answer

Microeconomics focuses on the decisions of individuals and firms in specific markets, while macroeconomics looks at the overall behavior of the economy, including topics such as inflation, economic growth, and unemployment. Therefore, microeconomics studies individual decision making, while macroeconomics examines aggregate decision making. Choice A is incorrect because both microeconomics and macroeconomics are concerned with both consumer and firm behavior. Choice B is incorrect because both microeconomics and macroeconomics utilize both positive and normative economic analysis. Choice C is incorrect because microeconomics studies specific markets and individual consumer and firm behavior, rather than aggregate decision making.

How Do Microeconomics and Macroeconomics Differ