Question : Assertion: Microeconomics focuses on the individual units of an economy, such as households and firms.
Reason: Microeconomics examines the allocation of resources and the determination of prices in specific markets.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Solution : The correct answer is (a) Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
The assertion is true. Microeconomics is a branch of economics that studies the behavior of individual economic agents, such as households, firms, and consumers. It examines their decision-making processes, interactions in specific markets, and how resources are allocated at the micro level.
The reason provided, is also true and provides a correct explanation for the assertion. Microeconomics analyzes the forces of supply and demand in specific markets to understand how prices are determined and how resources are allocated among different goods and services.
Therefore, both the assertion and reason are true, and the reason provides a correct explanation for the assertion.
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