What is the primary focus of microeconomics?

Microeconomics primarily focuses on individual markets and consumer behavior. This branch of economics studies how individuals, households, and firms make decisions regarding the allocation of limited resources. It examines the dynamics of supply and demand within specific markets, how prices are determined, and how consumers respond to changes in price and income levels.

Microeconomics further delves into the ways in which consumer choices are influenced by factors such as preferences, income, and the prices of goods and services. By analyzing these elements at a granular level, microeconomics provides insights into how various economic actors interact and the resulting impact on market equilibrium.

In contrast, the other options encompass broader aspects of the economy. Overall economic growth and policies lean more towards macroeconomic concepts, while government regulations and fiscal policies address interventions at a national level. Global trade and international markets expand this focus even further, incorporating international economic relationships rather than the localized or individualized approach prominent in microeconomics. Thus, the emphasis on individual markets and consumer behavior distinctly characterizes microeconomics.