GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How businesses make decisions
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How government manages the economy
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How individual consumers and firms make economic decisions
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None of the above
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Detailed explanation-1: -Microeconomics studies the decisions of individuals and firms to allocate resources of production, exchange, and consumption. Microeconomics deals with prices and production in single markets and the interaction between different markets but leaves the study of economy-wide aggregates to macroeconomics.
Detailed explanation-2: -Microeconomics strives to discover what factors contribute to peoples’ decisions, and what impact these choices have on the general market as far as price, demand, and supply of goods and services is concerned.
Detailed explanation-3: -Microeconomics is the branch of economics that focuses on the choices made by individual decision-making units in the economy-typically consumers and firms-and the impacts those choices have on individual markets.