Which of the following examples describes microeconom ics? Germany is a country in Western Europe. The Federal Reserve is increasing interest rates. The Yukon territory of Canada has extreme cold weather. People prefer buying iPhones over Nokia phones.

The example that describes microeconomics is: People prefer buying iPhones over Nokia phones.<br /><br />Microeconomics focuses on the behavior of individual consumers and firms, and how they make decisions regarding the allocation of limited resources. The preference for buying iPhones over Nokia phones is a matter of individual consumer choice and can be analyzed using microeconomic principles.