Question

The basic difference between macroeconomics and microeconomics is: microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

Answer 1

Answer:

The correct answer is: microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.

Explanation:

Economics is divided into two different categories: microeconomics and macroeconomics. Microeconomics is the study of individuals and business decisions, while macroeconomics looks at the decisions of countries and governments. They are interdependent and complement one another since there are many overlapping concerns between the two fields.

Microeconomics is the study of decisions made by people and businesses. Microeconomics focuses on supply and demand and other forces that determine the price levels in the economy. Microeconomics tries to understand human choices and resource allocation.

Macroeconomics, on the other hand, studies the behavior of a country and how its policies affect the economy as a whole.  It analyzes entire industries and economies. Macroeconomics focuses on aggregates and econometric correlations.