Which of the following statements is true?

A. Microeconomics focuses on specific decision-making units of the economy; macroeconomics examines the economy as a whole.
B. Macroeconomics focuses on specific decision-making units of the economy; microeconomics examines the economy as a whole.
C. Every topic in economics is either a microeconomic or a macroeconomic issue; a topic cannot be both.
D. Topics in microeconomics have public policy implications; topics in macroeconomics do not.

Respuesta :

Answer:

A. Microeconomics focuses on specific decision-making units of the economy; macroeconomics examines the economy as a whole.

Explanation:

Economic theory is divided into two broad areas: macroeconomics and microeconomics. Macroeconomics discusses large economic aggregates, such as income, inflation, and employment variations. It is an approach that aims to discuss these factors and bring about improvements through economic policies. Thus the purpose of macroeconomics is to analyze the economy as a whole. In turn, microeconomics deals with micro factors, such as the behavior of consumers and companies, including in relation to competitive structures. Thus, microeconomics examines individual production and consumption decisions and the interactions between consumers and businesses in the goods and services market.