Question : Assertion: Macroeconomics analyzes the economy as a whole, focusing on aggregate variables such as GDP and inflation.
Reason: Macroeconomics studies the interrelationships between different sectors of the economy and the overall performance.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Solution : The correct answer is (a) Both the assertion and reason are true, and the reason is a correct explanation of the assertion. The assertion is true. Macroeconomics is a branch of economics that deals with the overall behavior of the economy, examining aggregate variables such as Gross Domestic Product (GDP), inflation, unemployment rates, and economic growth. It looks at the economy as a whole rather than focusing on individual units like households and firms.
The reason provided, is also true and provides a correct explanation for the assertion. Macroeconomics examines how different sectors of the economy, such as consumption, investment, government spending, and net exports, interact with each other and contribute to the overall performance of the economy. It analyzes how changes in one sector can affect other sectors and the economy as a whole.
Therefore, both the assertion and reason are true, and the reason provides a correct explanation for the assertion.
Question : Assertion: Macroeconomics focuses on the overall performance and behavior of the economy as a whole.
Reason: Macroeconomics examines aggregate variables such as inflation, unemployment, and economic growth.
Question : Assertion: A mixed economy combines elements of both market and command economies.
Reason: In a mixed economy, the government intervenes to correct market failures and ensure equitable distribution of resources.
Question : Assertion (A): Human capital formation is a stock concept. Reason (R): Variables that are measured at a specific time are referred to as stocks.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Assertion (A) is False but Reason (R) is true.
Question : Assertion: Mixed economy combines elements of both market and command economies.
Reason: Mixed economies rely solely on government intervention to allocate resources effectively.
Question : Assertion: A market economy is characterized by decentralized decision-making by households and firms.
Reason: In a market economy, the forces of supply and demand determine prices and allocate resources.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile