Microeconomics Is the Study of ________

question 92

Multiple Choice

Microeconomics is the study of ________.

• A) the costs of production as a means of stimulating the economy and policies that raise capital and labor output by increasing the incentive to produce
• B) economic and financial data of the country by the application of mathematics and statistics
• C) the overall working of an economy in the society including its monetary and fiscal policies
• D) economic behavior among consumers, businesses, and industries that collectively determine the quantity of goods and services demanded and supplied at different prices
• E) a nation's economic issues, such as the effect of government policies and the ownership of factors of production

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Definitions:

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one additional unit of a good or service.

Consumer Equilibrium

occurs when a consumer has allocated their resources in such a way that maximizes their utility, given their budget constraint.

Unit Price

The cost per unit of a product, allowing consumers to compare the value of similar items sold in different quantities or volumes.

Marginal Utility

The augmented joy or usefulness a shopper obtains by buying an extra unit of a commodity or service.