CMA Foundation · Fundamentals of Business Economics and Management · The Fundamentals of Economics
Which of the following issues falls under macroeconomics rather than microeconomics?
Determination of the overall level of national income and employment is a macroeconomic issue because it concerns aggregates for the whole economy. Prices in one market, one firm's output and one consumer's purchases are individual units and belong to microeconomics.
- ADetermination of the price of wheat in a local market
- BOutput decision of a single textile firm in Surat
- CEffect of a change in a consumer's income on his purchase of milk
- DDetermination of the overall level of national income and employment in IndiaCorrect
Explanation
Macroeconomics studies aggregates such as national income, general price level and total employment. The others deal with an individual market, firm or consumer, which belong to microeconomics.
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