Question

Which of the following does not come under microeconomics?

• A. Pricing decision by Maruti Suzuki
• B. Fall in the price of oil
• C. Measurement of the general price level
• D. Production of foodgrains in India

Hint:

Microeconomics deals with specific markets and individual decisions, while macroeconomics looks at the overall economy, including national income and general price levels.

Answer 1

The Correct Option is C

Step 1: Understanding Microeconomics:
Microeconomics focuses on the behavior of individual economic agents, such as firms, households, and industries. It deals with specific markets and how prices and output are determined within these markets.
Step 2: Analyzing the Options:
- Pricing decision by Maruti Suzuki: This is a microeconomic issue as it concerns the pricing strategy of a single firm.
- Fall in the price of oil: This is a microeconomic issue because it involves the supply and demand in the oil market.
- Measurement of the general price level: This is a macroeconomic issue, as it deals with aggregate prices across the entire economy, often measured by indices like the Consumer Price Index (CPI).
- Production of foodgrains in India: This is a microeconomic issue as it concerns the production decisions of individual farmers or agricultural sectors.
Step 3: Conclusion:
The measurement of the general price level is a macroeconomic issue, making option (C) the correct answer.