Economics is a social science that examines how individuals, organizations, and societies allocate scarce resources. It is divided into microeconomics, which focuses on individual economic agents and market interactions, and macroeconomics, which studies the overall economy, including inflation, growth, and unemployment. Both branches are interconnected, as individual behaviors impact the broader economy, and government policies can influence individual decisions.

What is the primary focus of economics as a social science?

• The study of natural resources

• The behavior of individuals, organizations, and societies in decision-making

• The development of new technologies

• The history of economic thought

Which branch of economics focuses on the behavior of individual economic agents?

• Macroeconomics

• Behavioral Economics

• International Economics

• Microeconomics

What do microeconomics examine in individual markets?

• Global trade patterns

• Supply and demand interactions

• Aggregate economic activity

• Government policies

What is the main concern of macroeconomics?

• The pricing strategies of companies

• The overall performance of the economy

• The behavior of individual firms

• The production decisions of households

Which of the following is NOT a focus of macroeconomics?

• Individual consumer behavior

• Unemployment

• Economic growth

• Inflation

What does macroeconomics analyze to determine the overall level of economic activity?

• Aggregate behavior of consumers, producers, and governments

• Technological advancements

• Cultural influences on the economy

• Individual market prices

How do microeconomics and macroeconomics differ in their level of analysis?

• Microeconomics is concerned with government policies, while macroeconomics is not

• Microeconomics examines individual economic agents, while macroeconomics studies the economy as a whole

• Microeconomics studies global trade, while macroeconomics studies local markets

• Microeconomics focuses on the overall economy, while macroeconomics focuses on individual markets

How are microeconomics and macroeconomics related?

• Microeconomic behavior affects macroeconomic outcomes and vice versa

• They are completely independent of each other

• They study the same phenomena but from different perspectives

• One is a subset of the other

What is the main difference between microeconomics and macroeconomics?

• Microeconomics studies individual agents, while macroeconomics studies the overall economy

• Microeconomics focuses on government policies, while macroeconomics does not

• Microeconomics examines global trade, while macroeconomics examines local markets

• Microeconomics is concerned with inflation, while macroeconomics is not

What do both microeconomics and macroeconomics contribute to?

• Understanding of technological advancements

• Understanding of how the economy works

• Understanding of cultural influences on the economy

• Understanding of historical economic events