State with reasons whether you agree or disagree with the following statement (any three): Macro economics is different from micro economics.

Answer: I agree with the statement.

Reasons:

1. Scope: Micro economics studies individual units (a consumer, a firm, an industry); macro economics studies the economy as a whole.
2. Method: Micro uses the slicing method; macro uses the lumping (aggregative) method.
3. Theory: Micro economics is price theory (product and factor pricing); macro economics is income theory (national income, employment).
4. Equilibrium: Micro deals with partial equilibrium; macro deals with general equilibrium.
5. Assumptions: Micro assumes full employment and other things constant; macro treats these as variables.
6. Examples: Individual demand, individual income (micro) versus aggregate demand, national income (macro).

However, both are complementary and interdependent.