Question

Assertion (A) : Macro economics is also known as Income Analysis.

Reasoning (R) : Macro economics studies the income earned by a

particular individual or a particular firm.

Options : 1) (A) is True, but (R) is False

2) (A) is False, but (R) is True

3) Both (A) and (R) are True and (R) is the correct explanation of

(A)

4) Both (A) and (R) are True and (R) is not the correct explanation

of (A)​

Answer 1

1) (A) is True, but (R) is False

Why is the assertion correct?

• The assertion is correct because macroeconomics is concerned with the national income of a country and variables which effect it such as employment, growth etc.
• Hence, macro economics is also referred to as Income Analysis.

Why is the Reason not correct?

• The reason is false because macro economics studies the income made by an entire organization or country. The income made by a particular person is not studied under macroeconomics.