Question

The Department of Agriculture estimated that the expenditures a middle-income, husband and wife family of three would incur to raise one additional child from birth in 2005 to age 17 would be $250,530. What type of analysis does this scenario involve?

Answer 1

Microeconomics

Step-by-step explanation:

Microeconomics as opposed to Macroeconomics is a branch of economics that studies the "economic" behaviour of individuals and firms in making decisions concerning the allocation of scarce resources and the interactions among these individuals and firms.

This branch of economics studies market mechanisms as they affect relative prices among goods and services and how this dictates allocation of scarce resources among alternative uses.