Question:
The branch of economics that studies the decisions of individual households and firms is called
(1) macroeconomics.
(2) microeconomics.
(3) positive economics.
(4) normative economics.
(5) welfare economics.
Correct Answer:
(2)
Answer Explanation:
Microeconomics is the branch of economics that focuses on the specific, smaller components of the economy. It specifically studies the behavior, resource allocation, and decision-making processes of individual economic agents, namely households and firms.
Topic: Basic Concepts Year: 2019
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