Question

Which of the following is an important macro concept?

• A. national income
• B. effective demand
• C. consumption function
• D. business cycle

Answer 1

Answer: (A)

national income

Economics is divided into two branches basically:

(a) Micro economics

(b) Macro economics

(a) Micro economics deals with the study of behaviour that effects decision making of individuals or companies such as demand,price,consumer,etc.

(b) Macro economics deals with the study of behaviour of not only any individual or industries or any particular company but the whole economy such as national income, aggregate output, aggregate savings,etc.