The correct option is 2 and 3 only.
Explanation
Economics is broadly classified into two branches based on the scope of analysis: Microeconomics and Macroeconomics. While Microeconomics focuses on the behavior of individual economic agents and specific markets, Macroeconomics deals with the performance, structure, and behavior of the economy as a whole.
Statement-wise Analysis:
- Statement 1 is Incorrect: The determination of prices in individual markets (such as the market for a specific commodity like sugar or cars) is a subject matter of Microeconomics. It analyzes how supply and demand interact to determine the relative prices of goods and services.
- Statement 2 is Correct: Macroeconomics investigates the general price level of the entire economy. It studies aggregate phenomena such as inflation (a sustained rise in the general price level) and deflation, rather than price fluctuations of a single good.
- Statement 3 is Correct: Macroeconomics analyzes economy-wide issues, including the aggregate employment of resources. It seeks to understand the causes of unemployment and the underutilization of productive resources at a national level.
Key Takeaway:
Microeconomics studies individual units (consumers, firms) and specific markets, whereas Macroeconomics studies aggregate variables such as National Income, General Price Level, and Total Employment.