Exploring Economics Concepts

What is the primary focus of microeconomics?

• The overall economy and national income.

• Government policies and regulations.

• The impact of international trade on economies.

• The behavior of individual consumers and firms.

How does macroeconomics differ from microeconomics?

• Macroeconomics analyzes consumer behavior, while microeconomics focuses on government policies.

• Macroeconomics studies individual markets, while microeconomics looks at the overall economy.

• Macroeconomics focuses on the economy as a whole, while microeconomics focuses on individual agents and their interactions.

• Macroeconomics is concerned with short-term economic fluctuations, while microeconomics deals with long-term growth.

What is the law of demand in microeconomics?

• The law of demand states that price and quantity demanded are directly related.

• The law of demand indicates that price and quantity demanded are inversely related.

• The law of demand indicates that quantity supplied increases as price decreases.

• The law of demand suggests that higher prices lead to higher quantity demanded.

What are the main indicators used in macroeconomics?

• stock market performance

• GDP, unemployment rate, inflation rate, balance of trade

• interest rates

• consumer confidence index

Define GDP and its significance in macroeconomics.

• GDP (Gross Domestic Product) is a measure of the total economic output of a country.

• GDP is the total value of exports only.

• GDP measures the total population of a country.

• GDP is a measure of a country's land area.