Which of the following topics best applies to microeconomics?

• A. The pricing strategies of a single firm in a competitive market
• B. The impact of monetary policy on national unemployment rates
• C. The causes of inflation in the overall economy
• D. The measurement of gross domestic product (GDP)

Answer: (A)

Verified step by step guidance

1. Understand that microeconomics focuses on the behavior and decision-making of individual economic agents, such as consumers, firms, and markets, rather than the economy as a whole.
2. Identify that topics related to individual firms, their pricing strategies, production decisions, and market interactions fall under microeconomics.
3. Recognize that topics like monetary policy, inflation, unemployment rates, and GDP measurement deal with the economy-wide phenomena, which are studied in macroeconomics.
4. Compare each option to see which one deals with individual firm behavior: 'The pricing strategies of a single firm in a competitive market' clearly fits microeconomics.
5. Conclude that the correct topic related to microeconomics is the one focusing on the pricing strategies of a single firm in a competitive market.