Question

Study of National Income is related to

• A. Micro-Economics
• B. Macro-Economics
• C. Both (A) and (B)
• D. None of these

Hint:

If an economic concept has the word "National" or "Aggregate" in it, it's almost certainly a topic in Macroeconomics.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
The question asks to classify the study of National Income into one of the main branches of economics.

Step 2: Detailed Explanation:
National Income is the total income earned by the factors of production in a country over a year. It is an aggregate variable that measures the economic performance of the entire nation.
Macroeconomics is the branch of economics that studies the economy as a whole, focusing on aggregate variables like national income, aggregate demand, unemployment, and inflation. Therefore, the study of national income is a central topic in Macroeconomics.

Step 3: Final Answer:
The study of National Income is related to Macro-Economics. Therefore, option (B) is the correct answer.