Which of the following statements correctly highlights the difference between microeconomics and macroeconomics?
A) Microeconomics is descriptive, whereas macroeconomics is advisory.
B) Microeconomics primarily deals with positive analysis, whereas macroeconomics primarily deals with normative analysis.
C) Microeconomics deals with a small part of the economy, whereas macroeconomics deals with aggregate economic performance.
D) Microeconomics describes what economic agents actually do, whereas macroeconomics describes what economic agents ought to do.
C
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Explain the difference between marginal social benefit and marginal external benefit
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Which of the following is a true statement about real and nominal GDP?
A) Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year. B) If real GDP increases from one year to the next, we know that production of goods and services has risen. C) Increases in average prices do not affect the calculation of nominal GDP. D) If nominal GDP increases from one year to the next, we know that production of goods and services has risen.