Question

Do you agree with the following statements? Give reasons.
i) Micro Economics studies behaviour of individual unit.
ii) Micro Economics is known as income theory.

Answer 1

i) Micro Economics studies behaviour of individual unit - True
Yes, microeconomics is a study that basically focuses on the behaviour of an individual units in the economy such as consumer and producer.

ii) Micro Economics is known as income theory - False
No, microeconomics is not known as the income theory, rather ,it is known as the price theory, as it focuses on determining the prices of commodities and factors of production in the market.