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Match List-I with List-II

List-IList-II
(A) Macroeconomics(I) We study the behavior of aggregate measures of the performance of the economy.
(B) Mixed economy(II) All important decisions regarding production, exchange and consumption of goods and services are made by the government.
(C) Market(III) Some important decisions are taken by the government and the economic activities are by and large conducted through the market.
(D) Centrally planned economy(IV) A set of arrangements where economic agents can freely exchange their endowments or products with each other.

Choose the correct answer from the options given below:

  1. (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
  2. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
  3. (A) - (I), (B) - (III), (C) - (IV), (D) - (II)
  4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Solution

✅ Correct Option: 3

Option 3: (A) - (I), (B) - (III), (C) - (IV), (D) - (II) -> Let's match each concept correctly: (A) Macroeconomics studies aggregate measures like GDP, inflation, and unemployment, matching with (I). (B) Mixed economy combines government intervention with market mechanisms, matching with (III) where some decisions are governmental and others are market-driven. (C) Market is a platform for free exchange between economic agents, matching with (IV). (D) Centrally planned economy has government making all major economic decisions, matching with (II). This combination correctly pairs each economic concept with its proper definition. -> correct

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