CA Foundation Exam > CA Foundation Questions > Which of the following is not correct?a)Micro...
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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?
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.
Most Upvoted Answer
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 .
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.
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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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 2025 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 2025 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?.
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 2025 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 2025 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?.
Solutions 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? in English & in Hindi are available as part of our courses for CA Foundation.
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