Question

Microeconomics includes

• A. individual unit
• B. small variables
• C. individual price determination
• D. all of these

Hint:

"Micro" means small-scale. Microeconomics is about individual units, individual prices, and small-scale economic issues.

Answer 1

The Correct Option is D

Microeconomics is the branch of economics that studies the behavior of individual economic agents and the decisions they make regarding the allocation of scarce resources. Its scope includes:

(A) Individual Unit: It focuses on the study of individual consumers, firms, and industries.
(B) Small Variables: It deals with individual economic variables like the price of a specific commodity, the demand for a single product, or the wage of a particular type of labor, not economy-wide aggregates.
(C) Individual Price Determination: A core part of microeconomics is explaining how the prices of individual goods and services are determined through the interaction of demand and supply in a market.
All these elements are central to the study of microeconomics.