Which of the following is true? A. Macroeconomics is the study of the economy as a whole, while microeconomics deals with the individual decision-making units. B. Both microeconomics and macroeconomics deal with same economic issues of inflation, unemployment and growth. C. Microeconomics is the study of the economic aggregates, while macroeconomics deals with the functioning of individual industries. D. Microeconomics focuses on the determination of the national output, while macroeconomics focuses on the production and output of individual industries.

Question

Business

Cayden Coffey

21 May, 14:16

Which of the following is true? A. Macroeconomics is the study of the economy as a whole, while microeconomics deals with the individual decision-making units. B. Both microeconomics and macroeconomics deal with same economic issues of inflation, unemployment and growth. C. Microeconomics is the study of the economic aggregates, while macroeconomics deals with the functioning of individual industries. D. Microeconomics focuses on the determination of the national output, while macroeconomics focuses on the production and output of individual industries.

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Answers (1)

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Nathen Huffman · Answer 1

Macroeconomics is the study of the economy as a whole while microeconomics deals with the individual decision-making units.

(Option A) is the right answer

Explanation:

Microeconomics is taken from the Greek prefix called "mikro" which means "small". This is one of the branches of economics which talks about the study of behavior of individuals and firms in making decisions regarding the allocation of scarce resources. It also deals with the interactions among these individuals and firms.

Macroeconomics deals with "large-scale or general economic factors"

It is the study of "National economy"

Eg. Aggregate supply, Aggregate demand, Inflation.