What is an example of microeconomics?
See below for an 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.