Which of the following option is correct for the given statement?
Microeconomics deals with the aggregate economic variable of an economy.
Answer & explanation
Correct answer: option 2
The correct answer is option 2: Statement is false.
- Microeconomics deals with individual economic units such as consumers, firms, and specific markets, not aggregate economic variables.
- Macroeconomics, on the other hand, deals with aggregate economic variables like GDP, inflation, unemployment, and national income.
Since the statement incorrectly attributes aggregate economic variables to Microeconomics, it is false.