In the question given below there are 2

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- Microeconomics deals with the economic problems relating to aggregate demand and supply of the economy.

Reason (R)- Microeconomics addresses the economic problems at the level of individuals units like individual households, firms, industries etc.

Options:

Both (A) and (R) are true and (R) is the correct explanation.

Both (A) and (R) are true but (R) is not the correct explanation of (A).

(A) Is true but (R) is false.

(A) Is false but (R) is true.

Correct Answer:

(A) Is false but (R) is true.

Explanation:

The correct answer is Option 4: (A) Is false but (R) is true.

Assertion (A) is false because microeconomics does not deal with aggregate demand and supply. Instead, it focuses on the behavior of individual economic units like consumers, firms, and industries. Aggregate demand and supply fall under macroeconomics, which studies the economy as a whole.
Reason (R) is true because microeconomics indeed focuses on individual economic units such as households, firms, and industries, analyzing their decision-making processes regarding production, consumption, and pricing.