Question

Concerning individual households, income can be either consumed or saved, with the latter utilized by firms. This process reflects the fundamental concepts of:

a) Supply and demand
b) Fiscal policy
c) Microeconomics
d) Macroeconomics

Answer 1

Income being consumed or saved reflects the fundamental concepts of microeconomics.

Step-by-step explanation:

In the context of individual households, income can be either consumed or saved. Savings are often utilized by firms. This process reflects the fundamental concepts of microeconomics. Microeconomics focuses on the choices made by households and individuals, including how they allocate their income between consumption and savings.