Question

Read the following statements carefully and choose the correct alternative from the following:

Statement 1: Microeconomics studies the economy in general, while Macroeconomics concentrates on the working of the individual components. Statement 2: There is no degree of aggregation in microeconomics.

Options

• Both the Statements are True.

• Both the Statements are False.

• Statement 1 is True & Statement 2 is False.

• Statement 2 is True & Statement 1 is False.

Answer 1

Both the statements are false.

Explanation:

Microeconomics studies individual units, whereas macroeconomics studies the economy as a whole. Microeconomics can involve a limited degree of aggregation, such as adding individual demands to obtain market demand.