Which field of economics focuses on individual behavior in specific markets?

The correct answer is microeconomics, which concentrates on understanding the behavior of individuals and firms in particular markets. This branch of economics examines how consumers make decisions regarding the allocation of their resources, such as time and money, and how they respond to changes in prices, income, and preferences.

Microeconomics looks into the supply and demand dynamics of specific goods and services, the competitiveness among businesses, and the implications of market structures on economic activities. This focus on individual agents—consumers and producers—enables a deeper understanding of how various forces interact within specific sectors of the economy.

In contrast, macroeconomics explores the economy as a whole, dealing with broader aspects such as national income, inflation, unemployment, and overall economic growth rates. Resource development and capital theory, while important areas of study, do not primarily focus on individual market behaviors but rather on the effective use of resources and the role of capital in economic processes, respectively. Thus, microeconomics is the most relevant field for studying individual behavior within specific markets.