Statement I: Agricultural goods, industrial goods and services may be taken as representative of all commodities produced in the economy.
Statement II: Macroeconomics does not try to analyse how the output levels, prices and employment levels of these goods get determined.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is true but Statement II is false.
Macroeconomics may take three kinds of goods as representative of all goods. It does try to analyse how their outputs, prices and employment levels are determined.
Statement I: Agricultural goods, industrial goods and services may be taken as representative of all commodities produced in the economy. — True. These three general kinds may stand for all commodities.
Statement II: Macroeconomics does not try to analyse how the output levels, prices and employment levels of these goods get determined. — False. Macroeconomics also tries to analyse how these get determined.
NCERT (2026-27): “Introduction … So, in many cases, instead of a single representative category of good (or labour, or production technology), we may take a handful of different kinds of goods. For example, three general kinds of commodities may be taken as a representative of all commodities being produced within the economy: agricultural goods, industrial goods and services. These goods may have different production technology and different prices. Macroeconomics also tries to analyse how the individual output levels, prices, and employment levels of these different goods gets determined. …” |