Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Which of the following statement/statements are true?
Statement 1: Macroeconomics has deep roots in Microeconomics.
Statement 2: Micro economics studies the aggregate effects of the forces of demand and supply in the markets.

Options:

Both the statements are true.

Both the statements are false.

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Correct Answer:

Statement 1 is true and Statement 2 is false

Explanation:

The correct answer is Option 3: Statement 1 is true and Statement 2 is false

Statement 1: Macroeconomics has deep roots in Microeconomics. This is correct. Macroeconomics has deep roots in microeconomics because it has to study the aggregate effects of the forces of demand and supply in the markets.
Statement 2:
Micro economics studies the aggregate effects of the forces of demand and supply in the markets. This is correct. Macroeconomics (not micro economics) study the aggregate effects of the forces of demand and supply in the markets.