ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Study of individual choice, & how that choice is influenced by economic forces.
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Study of an economy as a whole, which includes inflation, unemployment, business cycles, & growth.
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Either A or B
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None of the above
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Detailed explanation-1: -Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
Detailed explanation-2: -The study of economics at an individual level is Microeconomics.
Detailed explanation-3: -Microeconomics studies the study of economics from the view point of an individual unit. Price theory studies how prices of goods are determined in the commodity market and how process of factors of production are determined in the factor market. Thus micro economics is also known as price theory.
Detailed explanation-4: -Microeconomics focuses on the role consumers and businesses play in the economy, with specific attention paid to how these two groups make decisions. These decisions include when a consumer purchases a good and for how much, or how a business determines the price it will charge for its product.
Detailed explanation-5: -Economics is the study of how we make choices in the face of scarcity and how those choices motivate behavior.