Question

Which of the following is not of subject matter of macro economics?
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Answer 1

CONSUMER'S EQUILIBRIUM is not included in the macro economics. It is a micro economic property since it is dealt with indivudual units of economy whereas the other options deal the economy as a whole. They are included in the National Income whereas CONSUMER'S Equilibrium is not included.

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Answer 2

Answer:

There is no clear-cut division between micro- and macro-economics. The scope of macroeconomics can be stated by giving a list of most important problems with which it is concerned.

Macroeconomics is concerned with the behaviour of the economy as a whole.

ADVERTISEMENTS:

The subject matter of macroeconomics is income and employment, inflation, balance of payment problems etc. which occur in milder forms all the time.

The purpose of macroeconomics is to present a logical framework for the analysis of these phenomena. What does determine income and employment? What does de­termine the price level? How are these related?

What policies can be used to affect them and how do they work? These are some of the questions the analytical framework presented here is meant to handle. Real income, em­ployment, the price level and the balance of payments are determined by the interaction of decisions made by the individuals when solving their economic problems; decisions about the consumption and investment, decisions about the allocation of wealth among alternative assets, decisions about how much labour to hire and supply, and many others.

Though these decisions are interdependent, it is useful to subdivide the economy into various sectors of decision-making in order to examine what forces operate in each sector before looking at the interdependence among them.