Question

What is an example of microeconomics?

Answer 1

See below for an explanation:

Explanation:

The key realization here is that microeconomics, as the prefix says, deals with the economy on a narrow scale, for instance, the economic decision making of individual actors.

Here are some examples of microeconomics:

• How a local business decides to allocate their funds
• How a city decides to spend a government surplus
• The housing market of a particular city/neighborhood
• Production of a local business

In general, microeconomics is concerned with decision making that has low-level effects, that is, a city, where as microeconomics has high-level, large-scale effects, that effects nations.