alleryWhich of the following subjects of study falls under Macro Economics rather than Micro Economics?
ANational income and national output
BPricing of a single product
CBehaviour of an individual firm
DLocation of a particular industry
Answer & Solution
Correct answer: A. National income and national output
1. Macro Economics deals with large economic aggregates.
2. National income and national output are such aggregates, so this is the macro topic.
3. Pricing of a single product is a micro topic (product pricing), so it is ruled out.
4. Individual firm behaviour and location of an industry are also micro-level subjects, eliminating them.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 1 Unit I "Nature and Scope of Business Economics", p.4_
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