Which area of economics studies the interactions between individual consumers and producers?

• A. Macroeconomics
• B. Development economics
• C. Microeconomics
• D. International economics

Answer: (C)

Verified step by step guidance

1. Understand the main branches of economics: Macroeconomics studies the economy as a whole, including aggregate indicators like GDP and inflation; Development economics focuses on improving economic conditions in developing countries; International economics deals with trade and financial relations between countries.
2. Recognize that Microeconomics specifically examines the behavior and decision-making processes of individual economic agents, such as consumers and producers.
3. Identify that the problem asks which area studies interactions between individual consumers and producers, which points directly to Microeconomics.
4. Recall that Microeconomics analyzes how these agents interact in markets, how prices are determined, and how resources are allocated at the individual level.
5. Conclude that the correct answer is Microeconomics because it focuses on the economic activities and choices of individual units rather than the economy-wide phenomena.