The correct option is 1 and 3 only.
Explanation
In macroeconomics, the "State" refers not just to the government but also to various statutory bodies and institutions that regulate and influence the economy. Unlike individual economic agents who operate on microeconomic principles, the State operates with broader objectives concerning the welfare of the economy as a whole.
Statement-wise Analysis:
- Statement 1 is Correct: In the context of macroeconomics, the decision-makers are the State and statutory bodies. This includes the Government of India and institutions like the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and others. These bodies formulate and implement policies (monetary, fiscal, and regulatory) to manage the economy.
- Statement 2 is Incorrect: The goals of the State and its statutory bodies are fundamentally different from those of individual economic agents. Individual agents (consumers and producers) generally aim to maximize private satisfaction or profit. In contrast, macroeconomic decision-makers pursue goals such as economic stability, full employment, and social welfare, rather than private profit maximization.
- Statement 3 is Correct: One of the primary functions of the State is to provide public goods and services that the market might not provide efficiently or equitably. The State directs the deployment of resources towards public needs such as law and order, national defence, education, and healthcare to ensure social welfare and development.
Key Takeaway:
Macroeconomic decision-makers (the State and statutory bodies) prioritize social welfare and economic stability, whereas microeconomic agents prioritize private profit and individual satisfaction.