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 Which of the following is not correct?
  • a)
    Micro and Macro economics are complementary to each other
  • b)
    Every macro-economic problem requires micro-economic analysis for its proper understanding
  • c)
    Micro-economic behaviour can be added-up to derive macro-economic behaviour.
  • d)
    What is macro from the national angle is micro from world angle
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
Which of the following is not correct?a)Micro and Macro economics are ...
  • Microeconomic behaviour cannot be added-up to drive macroeconomic behaviour.
  • The phenomenon in Microeconomics cannot be generalized for all the units in the economy on an aggregate level.
  • For example the theory of an individual firm cannot be universally applied to the whole industrial sector in an economy. The theory of individual consumer behaviour is different from the behaviour of the whole economy’s behaviour at the aggregate level. The demand of a single person may not always match with the economy’s aggregate demand. 
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Which of the following is not correct?a)Micro and Macro economics are ...
The answer is option D .
Because how that the macro from the national angle & micro from world angle maybe it may comes that macro from world & micro from national .
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Which of the following is not correct?a)Micro and Macro economics are ...
Explanation:

Micro and Macro Economics

Micro and macro economics are two branches of economics that are complementary to each other. Microeconomics deals with the economic behavior of individual units such as households, firms, and industries, while macroeconomics studies the behavior of the economy as a whole.

Micro-economic Behavior vs Macro-economic Behavior

Micro-economic behavior cannot always be added-up to derive macro-economic behavior. This is because the behavior of the economy as a whole is not always the sum of the behavior of individual units. Some examples of such situations are:

- The aggregate demand curve slopes downward, but the individual demand curves may slope upward or be perfectly elastic.
- The Phillips curve shows a negative relationship between inflation and unemployment, but the individual firms may face upward sloping marginal cost curves.

Therefore, macroeconomic analysis requires a different set of tools and concepts than microeconomic analysis.

Macro from National Angle vs Micro from World Angle

The statement "what is macro from the national angle is micro from the world angle" is generally true. This is because the size of the economy matters in determining whether an issue is a macroeconomic or microeconomic one. For example, inflation may be a macroeconomic problem for a small country, but a microeconomic problem for a large country. Similarly, the exchange rate may be a macroeconomic issue for a small country, but a microeconomic issue for a large country.

Conclusion

In summary, option C is not correct because the behavior of the economy as a whole cannot always be derived from the behavior of individual units, and macroeconomic analysis requires a different set of tools and concepts than microeconomic analysis.
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Features of a Mixed Economy:A mixed economy is an economic system that combines elements of both a market economy and a planned economy. It incorporates features of both private enterprise and government intervention. The correct answer is D, as all of the following features are characteristic of a mixed economy:1. Planned economy:A mixed economy includes elements of a planned economy, where the government plays a role in guiding and regulating economic activities. It formulates economic plans and policies to ensure the efficient allocation of resources and to promote economic stability.2. Dual system of pricing:In a mixed economy, there exists a dual system of pricing, which means that both market prices and government-set prices coexist. While market forces determine prices for most goods and services, the government may intervene to regulate prices in certain sectors to protect consumers or promote social welfare.3. Balanced regional development:Another characteristic of a mixed economy is the emphasis on balanced regional development. The government intervenes to ensure that economic growth and development are not concentrated in specific regions or industries but are spread across different regions and sectors. This helps to reduce regional disparities and promote overall economic stability and social welfare.Benefits of a Mixed Economy:A mixed economy offers several benefits due to its combination of market forces and government intervention. Some of these benefits include:1. Economic efficiency:By incorporating market mechanisms, a mixed economy allows for resource allocation based on supply and demand, which promotes economic efficiency. Market forces encourage competition, innovation, and productivity, leading to higher levels of economic growth.2. Social welfare:Government intervention in a mixed economy enables the provision of public goods and services that may not be adequately provided by the market alone. This includes areas such as healthcare, education, infrastructure, and social security, ensuring a certain level of social welfare and equity.3. Stability and regulation:The government's role in a mixed economy helps to maintain economic stability through macroeconomic policies such as fiscal and monetary measures. It also regulates certain sectors to prevent market failures, protect consumer rights, and ensure fair competition.Conclusion:A mixed economy combines the advantages of both market forces and government intervention. It allows for economic efficiency, social welfare, and stability. The features of a mixed economy include elements of a planned economy, a dual system of pricing, and balanced regional development. These features work together to create a system that promotes both economic growth and social welfare.

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Which of the following is not correct?a)Micro and Macro economics are complementary to each otherb)Every macro-economic problem requires micro-economic analysis for its proper understandingc)Micro-economic behaviour can be added-up to derive macro-economic behaviour.d)What is macro from the national angle is micro from world angleCorrect answer is option 'C'. Can you explain this answer?
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Which of the following is not correct?a)Micro and Macro economics are complementary to each otherb)Every macro-economic problem requires micro-economic analysis for its proper understandingc)Micro-economic behaviour can be added-up to derive macro-economic behaviour.d)What is macro from the national angle is micro from world angleCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is not correct?a)Micro and Macro economics are complementary to each otherb)Every macro-economic problem requires micro-economic analysis for its proper understandingc)Micro-economic behaviour can be added-up to derive macro-economic behaviour.d)What is macro from the national angle is micro from world angleCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is not correct?a)Micro and Macro economics are complementary to each otherb)Every macro-economic problem requires micro-economic analysis for its proper understandingc)Micro-economic behaviour can be added-up to derive macro-economic behaviour.d)What is macro from the national angle is micro from world angleCorrect answer is option 'C'. Can you explain this answer?.
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