Question 2
Basic ConceptsThe study of the economic behaviour of individual decision-making units (consumers, resource owners and business firms) in a free-enterprise economy is known as
- A.microeconomics
- B.macroeconomics
- C.production
- D.indifference curve.
Show the answer and explanation
Answer: A (microeconomics)
Explanation
Microeconomics studies individual units such as households and firms; macroeconomics studies the whole economy.