Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

The word Economics is derived from the ancient Greek word oikonomia. The father of Economics has defined it as “an inquiry into the nature and causes of the wealth of nations.”Economics has two main branches - Microeconomics and macroeconomics. Where microeconomics deals with how the household and firms in different kinds of markets allocate resources to produce and consume goods, macroeconomics deals with the economy as a whole. It deals with various factors like national output, GDP, income, employment, interest rate, etc. Many economists have given their theories and viewpoints on how to deal with various economic problems. Both the branches are interdependent and complement each other.

Which of the following can be considered as economic agents in Macroeconomics?

Options:

Government

RBI

SEBI

All of above

Correct Answer:

All of above

Explanation:

The correct answer is Option 4: All of above

In macroeconomics, economic agents are decision-makers whose actions influence the overall economy. Here's why all the options you provided are considered economic agents:

Government: Government spending, taxation policies, and regulations significantly impact economic factors like inflation, unemployment, and economic growth.
RBI (Reserve Bank of India): The central bank plays a crucial role in managing the money supply, interest rates, and foreign exchange reserves, all of which have a major impact on the macroeconomic performance of the country.
SEBI (Securities and Exchange Board of India): SEBI regulates the stock market and other financial institutions, influencing investment behavior and the overall financial health of the economy.