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Question
Statistics
Posted 10 months ago
Which of the following best describes the difference between microeconomics and macroeconomics?
Choose 1 answer:
(A) Microeconomics is about individuals, households, and firms; Macroeconomics is about economies as a whole
(B) Microeconomics is about efficiency; Macroeconomics is about equity
(c) Microeconomics is about markets for financial assets; Macroeconomics is about markets for the factors of production
(D) Microeconomics is about normative analysis; Macroeconomics is about positive analysis
(E) Microeconomics is about how much total output there is in an economy; Macroeconomics is about how much individual firms produce.
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Answer from Sia
Posted 10 months ago
Solution by Steps
step 1
Identify the fundamental differences between microeconomics and macroeconomics. Microeconomics focuses on individual units within an economy such as consumers, firms, and markets for goods and services. Macroeconomics, on the other hand, deals with the economy as a whole, including issues like inflation, unemployment, and economic growth
step 2
Match the fundamental differences to the answer choices provided. Choice (A) correctly identifies that microeconomics is about individuals, households, and firms, while macroeconomics is about economies as a whole
step 3
Eliminate the other options as they do not accurately represent the core difference between microeconomics and macroeconomics. For example, (B) incorrectly associates microeconomics solely with efficiency and macroeconomics solely with equity, which are concepts that can apply to both fields. Similarly, choices (C), (D), and (E) do not correctly capture the essence of the distinction between the two fields
Answer
A
Key Concept
The distinction between microeconomics and macroeconomics
Explanation
Microeconomics studies individual units within an economy, while macroeconomics looks at the economy as a whole.
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