Question : The study of individual consumer choices is primarily associated with:
Option 1: Macroeconomics
Option 2: Microeconomics
Option 3: Managerial economics
Option 4: International economics
Correct Answer: Microeconomics
Solution : The correct answer is (b) Microeconomics.
Microeconomics focuses on the behavior and decision-making of individual economic units, such as consumers, households, and firms. It examines how individuals make choices regarding consumption, saving, and spending based on their preferences, budget constraints, and the prices of goods and services.
Microeconomics analyzes consumer behavior to understand factors such as demand, elasticity, utility maximization, and the impact of changes in prices and income on individual choices. Managerial economics, on the other hand, primarily focuses on the application of economic principles to managerial decision-making within firms. International economics primarily deals with economic interactions between countries.
