Question 25 of 41
Q.Macro economics is different from micro economics.
(a) Agree
(b) Disagree
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2024MCQ· 4mImportance★★★★★
61% · 25/41 Questions
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Start your 14-day free trial to unlock the full solution →The statement is correct. Although the two branches are interdependent, macroeconomics differs clearly from microeconomics in scope, subject matter and method, so one agrees.
Reasons for agreeing:
- Difference in scope: Microeconomics studies individual economic units — a particular consumer, firm, price or market. Macroeconomics studies economy-wide aggregates — national income, total output, aggregate demand and supply, general price level and total employment.
- Difference in subject matter: Microeconomics deals with price determination and allocation of resources (price theory), whereas macroeconomics deals with the determination of income and employment (income theory).
- Difference in method: Microeconomics uses the slicing method (partial equilibrium), analysing one small part in isolation. Macroeconomics uses the lumping method (general equilibrium), studying the whole economy together. …
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