Question

The basic difference between macroeconomics and microeconomics is that ________________.

• A. macroeconomics looks at the aggregate markets, while microeconomics is concerned with the subcomponents.
• B. macroeconomics is concern with policy decisions, while microeconomics applies only to theory.
• C. microeconomics is concerned with the aggregate markets, while macroeconomics is concerned with the components.
• D. opportunity cost is applicable to macroeconomics, and the fallacy of composition relates to microeconomics.

Answer 1

The correct option is A macroeconomics looks at the aggregate markets, while microeconomics is concerned with the subcomponents.

Macroeconomics studies the economy as a whole and therefore looks at the aggregate markets.

Microeconomics studies individual factors in the economy therefore it is concerned with its subcomponents.