Which of the following issues is most explored in microeconomics?

• A. How individual consumers and firms make decisions
• B. The measurement of gross domestic product (GDP)
• C. The effects of monetary policy on inflation
• D. The causes of national unemployment rates

Answer: (A)

Verified step by step guidance

1. Understand the scope of microeconomics: Microeconomics focuses on the behavior and decision-making processes of individual economic agents, such as consumers and firms.
2. Identify the key topics typically studied in microeconomics, which include how consumers choose goods and services, how firms decide on production and pricing, and how markets allocate resources.
3. Recognize that topics like the measurement of GDP, effects of monetary policy on inflation, and national unemployment rates are generally studied in macroeconomics, which looks at the economy as a whole.
4. Compare each option to the core focus of microeconomics and determine which one aligns best with individual decision-making by consumers and firms.
5. Conclude that the issue most explored in microeconomics is 'How individual consumers and firms make decisions' because it directly relates to the behavior of individual economic units.