What Is the Basic Difference Between Macroeconomics and Microeconomics

question 87

Multiple Choice

What is the basic difference between macroeconomics and microeconomics?

• A) Microeconomics is concerned with the trees (individual markets), while macroeconomics is concerned with the forest (aggregate markets).
• B) Macroeconomics is concerned with positive economics, while microeconomics is concerned with normative economics.
• C) Macroeconomics is concerned with policy decisions, while microeconomics applies only to theory.
• D) Microeconomics looks at the forest (aggregate markets), while macroeconomics is concerned with the trees (individual markets).

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Definitions:

Logarithm

The exponent to which a base must be raised to produce a given number, expressing the relationship between a geometric progression and an arithmetic progression.

Calculator

An electronic device or software used for performing mathematical operations.

Inverse Function

A function that reverses the effect of the original function, such that applying both the function and its inverse will return the original input.

Graph

A drawing that portrays the network of relations or connections between various items through the use of distinct features like dots, lines, and bars.