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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

Identify the incorrect statement from the following.

Options:

In microeconomics, we study the behaviour of individual economic agents in the markets for different goods and services.

In macroeconomics, we try to get an understanding of the economy as a whole by focusing our attention on aggregate measures such as total output, employment and aggregate price level.

In macroeconomics, we are interested in finding out how the levels of aggregate macro measures are determined and how the levels of these aggregate measures change over time.

In macroeconomics, we try to figure out how prices and quantities of goods and services are determined through the interaction of individuals in these markets.

Correct Answer:

In macroeconomics, we try to figure out how prices and quantities of goods and services are determined through the interaction of individuals in these markets.

Explanation:

The correct answer is Option (4) → In macroeconomics, we try to figure out how prices and quantities of goods and services are determined through the interaction of individuals in these markets.

  • This statement actually describes microeconomics, not macroeconomics.

  • Microeconomics studies the behavior of individual economic agents — consumers, firms, and industries — and examines how prices and quantities of particular goods and services are determined through their interaction in specific markets.

  • Macroeconomics, on the other hand, looks at the economy as a whole — studying aggregate output, national income, employment, and the general price level.

CUET Questions