Question

"Macroeconomics is the part of economics concerned with individual units such as a person, a household, a firm, or an industry." This statement is:
A. positive but incorrect.
B. positive and correct.
C. normative but incorrect.
D. normative and correct.

Answer 1

Answer:

Positive but incorrect

Explanation:

Macroeconomics is a branch of economics that studies how an overall economy—the market systems that operate on a large scale behaves. Macroeconomics studies economy-wide phenomena such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment.

On the contrary, Microeconomics is the part of economics concerned with individual units, such as a person, a household, a firm or an industry.

Therefore the statement, "Macroeconomics is the part of economics concerned with individual units such as a person, a household, a firm, or an industry." is incorrect.

Furthermore, a positive statement is a statement based on theories and facts, and can be proven WHILE a normative statement is a statement based on values, judgements and opinions, which makes it subjective.

Therefore the statement is positive but incorrect

Answer 2

Answer: A. positive but incorrect.

Explanation: The statement is positive but incorrect because macroeconomics does deal with industries, and firms but it is more concerned with the general economics or large scale factors like interest rates, national productivity, national income, Gross domestic product (GDP). This in general is what micro economics entails