Question

Microeconomics focuses on A. aggregate economic variables like the rate of unemployment or national income. B. inflation and growth in our overall economy. C. all households and firms grouped together and how they interact with the government. D. decisions made by individual households and firms.

Answer 1

Answer:

D). Decisions made by individual households and firms.

Explanation:

'Microeconomics' is described as the branch of economics that is associated with the study of individual units like a household, firm, etc. or solitary factors that contribute to affecting the allocation or distribution of the limited(scarce) resources through their specific actions or decisions.

As per the question, Microeconomics concentrates on the 'decisions made by the individual households and firms' as their decision-making influences the allotment of scarce resources. Thus, this branch of economics is focused on analyzing the individual factors that contribute to influencing resource allocation and produce the situations in which they can attain the desirable allotment. Thus, option D is the correct answer.