Practice Quiz

CLEP Social Sciences

Category - Social Sciences

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What is the main difference between the two sub disciplines in economics: microeconomics and macroeconomics?
  1. Microeconomics studies goods, while macroeconomics studies services.
  2. Microeconomics studies individuals, while macroeconomics studies corporations.
  3. Microeconomics studies allocation of resources, while macroeconomics studies economies as a whole.
  4. Microeconomics studies local markets, while macroeconomics studies international markets.
Explanation
Answer - C - The main difference between microeconomics and macroeconomics is that microeconomics studies allocation of resources, while macroeconomics studies economies as a whole.

Key Takeaway: The behavior of individual consumers in purchasing goods and services as well as the behavior of business in a society comprises the sub discipline of microeconomics. The overall behavior of entire economies and industries such as a Gross National Product (GDP) comprise the sub discipline of macroeconomics.
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