Question

Which statement reflects a core distinction between microeconomics and macroeconomics based on their Greek roots?

Options

• Microeconomics studies small changes in government policy.

• Macroeconomics considers "small" resource allocation for individual households.

• Microeconomics deals with individual units; macroeconomics examines large-scale economic phenomena.

• Both study only large organisations.

Answer 1

Microeconomics deals with individual units; macroeconomics examines large-scale economic phenomena.

Explanation:

'Mikros' means "small" and relates to individual units, while 'Makros' means "large", relating to entire systems.