Question

The method adopted in microeconomic analysis:

1. Lumping method
2. Aggregative method
3. Slicing method
4. Inclusive method

Options

• a, c and d

• a, b and d

• Only c

• Only a

• b, c and d

• a, b, c, and d

Answer 1

Only c

Explanation:

In microeconomics, the economy is split or divided into small individual units, and then each unit is studied in detail. Therefore, it is called the ‘slicing method’. Conversely, the lumping method or aggregative method is used in macroeconomics.