alleryA study of total consumption, total saving, total investment, and the overall level of employment in an economy belongs to:
AConsumer behaviour
BMacro Economics
CFactor pricing
DMicro Economics
Answer & Solution
Correct answer: B. Macro Economics
1. The listed items are economy-wide aggregates.
2. Studying aggregates such as total consumption, saving, investment, and employment is the role of Macro Economics.
3. Factor pricing is a micro topic, so it is eliminated.
4. Consumer behaviour and Micro Economics deal with individual units, not these aggregates, ruling them out.
_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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