Question : Statement 1: Microeconomics focuses on the study of individual economic agents and their behavior.
Statement 2: Macroeconomics focuses on the study of the overall performance and behavior of the economy.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
Correct Answer: Both statements 1 and 2 are true.
Solution : The correct answer is (c) Both statements 1 and 2 are true.
Statement 1 is true: Microeconomics indeed focuses on the study of individual economic agents, such as households and firms, and their behavior in making economic decisions.
Statement 2 is also true: Macroeconomics focuses on the study of the overall performance and behavior of the economy as a whole. It analyzes aggregate variables such as inflation, unemployment, GDP growth, and fiscal and monetary policies.
Therefore, both statements are true and provide accurate descriptions of the scope and focus of microeconomics and macroeconomics, respectively.
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