The correct option is 2 and 3 only.
Explanation
Economics is broadly classified into Microeconomics and Macroeconomics. Microeconomics studies the behavior of individual economic units such as consumers, firms, and industries. Macroeconomics, in contrast, deals with the economy as a whole, focusing on aggregate variables.
Statement-wise Analysis:
- Statement 1 is Incorrect: The study of economy-wide aggregates like National Income, total employment, and the general price level is the subject matter of Macroeconomics. Microeconomics focuses on individual incomes, product prices, and factor markets.
- Statement 2 is Correct: Microeconomics generally operates under the assumption of Partial Equilibrium. It assumes that macro variables (such as the general inflation rate or aggregate employment) are given and constant (ceteris paribus) to isolate and analyze the behavior of specific markets or agents.
- Statement 3 is Correct: This statement describes the Theory of Consumer Behaviour, a fundamental pillar of Microeconomics. It analyzes how a consumer allocates their limited income across different goods and services to maximize satisfaction (utility), based on their individual preferences and budget constraints.
Key Takeaway:
Microeconomics deals with individual decision-making and market mechanisms (Price Theory), assuming macro variables are constant. Macroeconomics deals with aggregate economic performance (Income Theory).