Q.Examine the correctness of the following statement and correct it if incorrect, without changing the underlined portion : Macro economics is the study of individual units.

The statement is incorrect; the study of individual units is microeconomics. Correct statement: 'Microeconomics is the study of individual units.'

Economic analysis is carried out at two levels:

• Microeconomics studies individual economic units — an individual consumer, an individual firm, a single product's price, the demand for one commodity. It is sometimes called price theory and uses the 'slicing' method, examining a small part of the economy.
• Macroeconomics studies the economy as a whole — aggregates such as national income, total output and employment, the general price level, aggregate demand and supply. It is sometimes called income-and-employment theory and uses the 'lumping' method. …