Question

'Income and employment theory' is the other name for which branch of Economics?
1. Macroeconomics
2. Microeconomics
3. Public finance
4. International economics

Answer 1

Correct Answer - Option 1 : Macroeconomics

The correct answer is Macroeconomics.

• Macroeconomics is a branch of economics that studies how an overall economy:
  • Inflation.
  • Price levels.
  • Rate of economic growth.
  • National income.
  • Gross domestic product (GDP).
  • Changes in unemployment.
• The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.

• Microeconomics is the social science that studies the implications of incentives and decisions, specifically about how those affect the utilization and distribution of resources.
  • Microeconomics provides a more complete and detailed understanding than macroeconomics.
• Public finance is the management of a country’s revenue, expenditures, and debt load through various government and quasi-government institutions.
  • The main components include:
    • Tax collection.
    • Budget.
    • Expenditures.
    • Deficit/Surplus.
    • National Debt.
• International economics deals with the economic activities of various countries and their consequences.
  • It studies economic and political issues related to international trade and finance.