Microeconomics is the study of the choices that individuals and businesses make and the way these choices respond to incentives, interact, and are influenced by government. Microeconomics involves the analysis of how consumers make decisions about what to consume, how firms decide what and how much to produce, and how the interactions of consumers and firms determine how much of a good will be sold, and at what price. Many interesting questions can be approached …
showed first 75 words of 1082 total

showed last 75 words of 1082 total
…is paid for the use of capital, and entrepreneur receive a profit (or loss) for running their business There is a lot of income inequality throughout the world. Men, on average, earn more than women. College graduates, on average, earn more than high school graduates. Microeconomics explains how the economic choices that individuals, businesses, and governments make the interactions of those choices end up determining what, how, and for whom goods and services get produced.