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A
Microeconomics focuses on individual and business decisions, while macroeconomics looks at the economy as a whole.
B
Microeconomics is concerned with national income, while macroeconomics deals with consumer behavior.
C
Microeconomics involves government policies, whereas macroeconomics does not.
D
Microeconomics studies large-scale economic factors, while macroeconomics studies small-scale factors.
Understanding the Answer
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Answer
Microeconomics and macroeconomics are two important areas of economics that focus on different levels of the economy. Microeconomics looks at individual parts, like how households and businesses make decisions about spending, saving, and pricing. For example, if a local bakery raises the price of its bread, microeconomics helps us understand how this affects customers' choices and the bakery’s sales. On the other hand, macroeconomics examines the economy as a whole, including national issues like unemployment rates and inflation. Understanding both concepts helps us see how individual actions influence larger economic trends and policies.
Detailed Explanation
Microeconomics looks at small parts of the economy, like individual choices. Other options are incorrect because This mixes up the focus areas; This is incorrect because both fields can involve government policies.
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