Value Based Questions and Answers on Macro Economics
Q1: Ms. Nidhi is interested in knowing the change in quantity produced by a farmer with a fall in the price of the product. Which branch of economics would she study to ascertain the change?
Answer: Micro Economics
Q2: Give an example to show that an item which is kept constant in micro economics is considered a variable in macro economics.
Answer: National Income is kept constant in micro economics, but in macro economics, it is considered as an important variable.
Q3: What is the rationale for not taking into account the value of intermediate goods in the measure of Gross Domestic Product?
Answer: To avoid the problem of double counting.