The study of microeconomics includes the study of _______.

output and employment growth as markets expand in reaction to a rising price level in the economy

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how firms, workers, consumers, and investors interact and make decisions in the marketplace.

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the number of new jobs and income created as the economy grows.

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business investment and government spending in the marketplace.

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Solution

The correct option is B how firms, workers, consumers, and investors interact and make decisions in the marketplace.
Micro economics deals in the study of individual variables, how they interact with each other and influence various factors in the market like price of a commodity to achieve individual as well as economic stability.

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Similar questions

In an economy income increases by Rs. 10,000 as a result of a rise in investment expenditure by Rs. 1,000. Calculate:

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Q. Fill in the blanks with appropriate alternatives given in the brackets.

1) The terms Micro and Macro Economics were first used by _______________. (Adam Smith/ Robbins/ Ragner Frisch/ Marshall).

2) Micro Economics is a study of _________. (Whole economy/ general price level/ National output/ Individual economic unit).

3) Micro Economics is also called as ________________. (Income theory/ Price theory/ Growth theory/ Employment theory)

4) Micro Economic analysis adopts __________________ method. (lumping/ aggregative/ Slicing/ inclusive)

5) Micro Economics is a __________________________ equilibrium approach. (partial/ general/ total/ multi-variable).

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