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Category - Economics

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What is the difference between macroeconomics and microeconomics?
  1. Microeconomics is the study of people and individual businesses; macroeconomics is the study of entire economies.
  2. Microeconomics studies the role of the individual spender in the economy: macroeconomics studies any group or entity consisting of more than one person.
  3. Microeconomics is the study of entire economies; microeconomics is the study of people and individual businesses.
  4. Microeconomics studies any group or entity consisting of more than one person; macroeconomics studies the role of the individual spender in the economy.
Explanation
Answer: A - Microeconomics is the study of people and individual businesses; macroeconomics is the study of entire economies, as well as governments and industries. For example, in microeconomics one would study how a company can balance the demand for a product with its price to maximize profits. In macroeconomics, one would study how a nation can impose tariffs to bolster their domestic economy.
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