Which of the following best describes microeconomics?

Microeconomics focuses on the behavior and decisions of individual economic units, such as households and firms, as well as the interactions within specific markets. It involves examining how these entities make choices about the allocation of resources, pricing, supply and demand, and how they respond to changes in economic conditions. By analyzing individual markets, microeconomics provides insights into how businesses set prices, how consumers decide to purchase goods and services, and how various factors influence market equilibrium.

The other options relate to broader economic concepts. For instance, the study of overall economic growth pertains to macroeconomics, which examines national economies as a whole. Aggregate national income analysis also falls under macroeconomics, focusing on total income produced within an economy rather than the actions of individual consumers or businesses. Finally, the assessment of international economic relations looks at trade and economic interactions between countries, which is another area of macroeconomic study. All these areas are significant, but they do not align with the specific focus of microeconomics, which is concentrated on the individual components within the economy.