Question : Statement 1: Macroeconomics focuses on studying the aggregate level of economic activity, such as GDP and inflation.
Statement 2: Microeconomics analyzes the behavior of individual consumers and producers in the market.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
Correct Answer: Both statements 1 and 2 are true.
Solution : The correct answer is (c) Both statements 1 and 2 are true.
Statement 1 is true: Macroeconomics indeed focuses on studying the aggregate level of economic activity. It examines variables such as Gross Domestic Product (GDP), inflation, unemployment, and overall economic growth. Macroeconomics seeks to understand the behavior of the economy as a whole and the factors influencing its performance.
Statement 2 is also true: Microeconomics analyzes the behavior of individual consumers and producers in the market. It examines how households and firms make decisions regarding consumption, production, pricing, and resource allocation at the individual level. Microeconomics focuses on understanding the forces of supply and demand and how they interact to determine market outcomes.
Therefore, both statements 1 and 2 are true.
Question : Statement 1: Microeconomics focuses on the study of individual economic agents and their behavior.
Statement 2: Macroeconomics focuses on the study of the overall performance and behavior of the economy.
Question : Assertion (A): Both microeconomics and macroeconomics are supplementary to each other. Reason (R): The superiority of one approach over the other can not be claimed.
Option 1: Both A and R are true and R is the correct explanation of A.
Option 2: Both A and R are true but R is not the correct explanation of A.
Option 3: A is true but R is false.
Option 4: A is false but R is correct.
Question : Which of the following is a topic studied in macroeconomics?
Option 1: Elasticity of demand
Option 2: Production possibilities frontier
Option 3: Utility maximization
Option 4: Economic growth
Question : The subject of the study of macroeconomics is based on which principle?
Option 1: The principle of national income.
Option 2: The principle of consumer.
Option 3: The principle of producer.
Option 4: The principle of investment.
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