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O Levels Economics (2281)•2281/12/M/J/20
Question 4 from 2281/12/M/J/20

Explanation

Microeconomics vs. Macroeconomics Focus

Steps:

  • Recall microeconomics studies individual agents like consumers and firms, analyzing choices under scarcity.
  • Identify choices A, B, D as firm-level (costs/revenues), consumer decisions, and labor market specifics (wages), all micro topics.
  • Recognize choice C involves aggregate economy-wide policies, fitting macroeconomics.
  • Confirm by definition: micro examines partial equilibrium; macro looks at overall growth.

Why C is correct:

  • Economic growth policies target national output and employment aggregates, a core macroeconomic area per standard definitions like those in Mankiw's Principles of Economics.

Why the others are wrong:

  • A: Firm costs and revenues are microeconomic profit maximization analyses.
  • B: Consumer behavior involves utility maximization, a foundational micro concept.
  • D: Wages by occupation reflect labor supply/demand in specific markets, microeconomic.

Final answer: C

Topic: Microeconomics and macroeconomics

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