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