Microeconomics - Wikipedia

What is the goal of microeconomics?

Analyze market mechanisms and efficient allocations.

What are microfoundations?

Basic assumptions about micro-level behavior.

What is the Lucas critique?

Critique of macroeconomic theories.

What is the role of free markets in microeconomics?

Establish relative prices and allocate resources.

What are some issues macroeconomics deals with?

Growth, inflation, and unemployment.

What is the scope of microeconomics?

Individual decision-making and interactions.

What does microeconomics focus on?

Individual markets, sectors, or industries.

What is the relationship between microeconomics and economic policies?

Microeconomics analyzes effects of policies on behavior.

What is the difference between microeconomics and macroeconomics?

Microeconomics focuses on individuals and firms, macroeconomics on national economy.

What is the scope of macroeconomics?

National policies and economic activity.

What is microeconomics?

Study of individual behavior in allocating resources.

What does macroeconomics focus on?

Sum total of economic activity.

What is market failure?

When markets fail to produce efficient results.