The study of the interaction between individuals and businesses is known as:

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

Answer: (C)

Verified step by step guidance

1. Understand that the problem is asking for the definition of the study that focuses on interactions between individuals and businesses.
2. Recall that Microeconomics is the branch of economics that analyzes the behavior of individuals and firms in making decisions regarding the allocation of limited resources.
3. Recognize that Econometrics involves applying statistical methods to economic data, not the study of interactions themselves.
4. Note that International economics studies trade and financial relations between countries, which is broader than individual and business interactions.
5. Identify that Macroeconomics deals with the economy as a whole, such as inflation, unemployment, and economic growth, rather than individual or business-level interactions.