Microeconomics Differs from Macroeconomics in That

question 165

Multiple Choice

Microeconomics differs from macroeconomics in that:

• A)microeconomics studies individual decision making while macroeconomics examines aggregate decision making.
• B)microeconomics studies aggregate decision making while macroeconomics examines individual decision making.
• C)microeconomics utilizes positive economic analysis while macroeconomics utilizes normative economic analysis.
• D)microeconomics is concerned with consumer behavior while macroeconomics is concerned with firm behavior.
• E)There is no difference between microeconomics and macroeconomics.

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Definitions:

Utility Function

Mathematical representation of a consumer's preference ranking for a set of goods and services.

Budget Equation

A balance formula that represents the relationship between income, expenses, and savings within a specified period.

Entry Fee

A charge that must be paid to gain access to a particular service, activity, or location.

Consumption

Refers to the act of using goods and services to satisfy needs and wants.