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State with reason whether you agree or disagree with the following statement: The scope of micro economics is unlimited. - Economics

Answer in Brief

State with reason whether you agree or disagree with the following statement:

The scope of micro economics is unlimited.

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Solution

I disagree with the above statement.

Reason:

The scope of micro economics is limited.

The scope of micro economics is limited to only individual units. It doesn't deal with nationwide economic problems such as inflation, deflation, the balance of payments, poverty, unemployment, population, etc.

micro economics is mainly confined to price theory and resource allocation. It does not study the aggregates relating to the whole economy. This approach does not study national economic problems such as unemployment, poverty, inequality of income, etc. Theory of growth, the theory of business cycles, monetary and fiscal policies, etc. are beyond the limits of micro economics.

Concept: Introduction to Micro Economics
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 1 Introduction to Micro and Macro Economics
Exercise | Q 5. (1) | Page 7
SCERT Maharashtra Question Bank 12th Standard HSC Economics Maharashtra State Board 2021
Chapter 1 Introduction to Micro and Macro Economics
State with reasons whether you agree or disagree with the following statements | Q 1
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