Question

Which of the following is defined as branch of economic analysis that studies the economic behavior of the individual unit, a particular household, or a particular firm?

• A. Macro economics
• B. Micro economics
• C. National economics
• D. General economics

Answer 1

The correct option is B Micro economics

Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments. Microeconomics focuses on supply and demand, and other forces that determine price levels, making it a bottom-up approach. The division of economics into microeconomics and macroeconomics was given by Norwegian economist, Ragnar Frisch in 1933.