Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

Match the following:

1. Micro economics A. Aggregate demand and supply
2. Macro economics B. Below PPC
3. Attainable combinations C. Individual firm
4. Unattainable combinations D. Beyond PPC

 

Options:

1-C, 2-B, 3-A, 4-D

1-C, 2-A, 3-B, 4-D

1-C, 2-D, 3-B, 4-A

1-C, 2-A, 3-D, 4-B

Correct Answer:

1-C, 2-A, 3-B, 4-D

Explanation:

The correct answer is option 2: 1-C, 2-A, 3-B, 4-D

1. Micro economics C. Individual firm
2. Macro economics A. Aggregate demand and supply
3. Attainable combinations B. Below PPC
4. Unattainable combinations D. Beyond PPC

Microeconomics deal with the economic problems of the individual firm, households etc, whereas, macroeconomics deals with economy as a whole. Some of the variables of macroeconomics are aggregate demand and aggregate supply. 

All the points below and on the PPC are called attainable combinations, whereas, all the points beyond the PPC are called unattainable combinations.