Three of the following are macroeconomic decision makers. Pick the odd one out.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A large company acting in the interest of its own shareholders
Macroeconomic decision makers, such as the State, the RBI and SEBI, pursue public goals set by law or the Constitution.
A large company acts for its own shareholders, which is not always the interest of the country as a whole. However big it is, it is a ‘micro’ agent.
NCERT (2026-27): “… Even a large company was ‘micro’ in the sense that it had to act in the interest of its own shareholders which was not necessarily the interest of the country as a whole. …” “First, who are the macroeconomic decision makers (or ‘players’)? Macroeconomic policies are pursued by the State itself or statutory bodies like the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and similar institutions. Typically, each such body will have one or more public goals to pursue as defined by law or the Constitution of India itself. These goals are not those of individual economic agents maximising their private profit or welfare.” |