What is the difference between microeconomics and macroeconomics?

• A. Microeconomics concentrates on monetary policy, national income, and inflation, whereas macroeconomics examines individual firm production, consumer demand, and market prices.
• B. Microeconomics studies individual economic units (households, firms, and markets) and their decisions; macroeconomics studies the economy as a whole using aggregates such as GDP, inflation, and unemployment.
• C. Microeconomics primarily analyzes short-term fluctuations like business cycles and unemployment, while macroeconomics focuses on long-term consumer choices and firm pricing.
• D. Microeconomics is mainly about international trade, exchange rates, and the balance of payments; macroeconomics studies market structures, competition, and firm-level behavior.

Answer: (B)