Final answer:
Economic theory primarily aims to analyze the behavior of individuals and firms in economic decision-making, which is the focus of microeconomics. It also encompasses a broad range of activities, including production and distribution choices, economic growth, and responses to market conditions.
Step-by-step explanation:
The aim of economic theory can be expressed as an amalgamation of the four options given, as it encompasses the study of production, distribution, and consumption of goods and services, analyzes the behaviors of individuals and firms in making economic decisions, understands the factors influencing economic growth and development, and predicts and explains fluctuations in the overall economy. However, if we must select an expression that best encapsulates the primary focus of economic theory, then option 2, which aims to 'analyze the behavior of individuals and firms in making economic decisions' closely aligns with the principles of microeconomics.
Microeconomics is the study of how individual economic agents such as households and firms make decisions and allocate resources, especially in markets where goods and services are bought and sold. It examines how these agents interact within a market structure to influence prices, production, and distribution, and how they respond to changes in economic policies and market conditions. It focuses on concepts like budget constraints, total utility, and the problem of scarcity where the demand for goods and services exceeds the available supply.
Moreover, economic theory also touches upon the division of labor and specialization which allow for improved productivity and efficiency in the economy. This division of labor facilitates not only individual and firm level prosperity but also broadly affects societal well-being, addressing questions of global problems, citizenship, and environmental concerns.