Economic is classified into
Options
ANormative and positive
BMicro and macro
CInternal and external
DNone of the above
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Introduction to Business EconomicsPYQ Jun 23Question 663 of 209
All Questions Correct Answer
✅ Option b — Micro and macro
All Options:
- ANormative and positive
- BMicro and macro
- CInternal and external
- DNone of the above
Detailed Solution & Explanation
• Economics, as a field of study, is broadly divided into two main branches to facilitate understanding and analysis of economic phenomena.
• The correct classification is into Microeconomics and Macroeconomics. This distinction helps economists study different levels of economic activity.
• Microeconomics focuses on the behavior of individual economic units, such as households, firms, and individual markets. It deals with topics like consumer choice, production decisions, pricing of goods, and resource allocation in specific markets.
• Macroeconomics, on the other hand, studies the economy as a whole. It looks at aggregate economic phenomena like national income, inflation, unemployment, economic growth, and government policies.
• Option (A) Normative and positive refers to types of economic statements or analysis, not the classification of economics itself. Positive economics describes "what is," while normative economics deals with "what ought to be." These are approaches within both micro and macroeconomics.
• Option (C) Internal and external is not a standard classification for the field of economics. These terms might be used in other business contexts (e.g., internal vs. external factors affecting a business) but not for the fundamental division of economics.
• Therefore, the most appropriate and widely accepted classification of economics is into Micro and Macro.
About This Chapter: Introduction to Business Economics
Paper
Paper 4: Business Economics
Weightage
5%
Key Topics
Meaning, Scope, Price Mechanism
This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.
View Official ICAI SyllabusExam Strategy Tip
Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.
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