Economics · General Awareness

Economics Concepts and Theories

1,657 Questions

Review fundamental and advanced economics concepts through this structured question bank. The topics include macroeconomics, fiscal policy, international trade theories, and economic regulation. These questions are ideal for candidates preparing for civil services and other administrative competitive examinations.

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Economics Concepts and Theories Questions

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Which of these is a subject matter of micro economics?

  1. Interaction of producers and consumers in a market

  2. Aggregate demand

  3. Level of full employment

  4. Impact of variation in CRR on money supply
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Interaction of producers and consumers in a market is the subject matter of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy. It takes into account the demand and supply of individual units. All the other options are the concern of macroeconomics.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

In macroeconomics, we examine things such as ___________.

  1. questions of what, how and for whom

  2. relation between price and consumer demand

  3. interrelations among individual households and business firms.

  4. the overall price level/GDP growth
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In macro economics, we examine things such as the overall price level or GDP growth. 

The term ‘Macro’ is derived from the Greek word 'Makro' meaning large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc.  

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Which of these are outside the domain of Microeconomics?

  1. Consumer behaviour

  2. Factor pricing

  3. Economic growth

  4. Study of firm
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Economic growth is outside the domain of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy and not the issues that occur on a national scale like, economic growth and employment. It takes into account the demand and supply of individual units. 

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Macroeconomics focuses primarily on __________.

  1. unemployment, inflation, economic growth, and other aggregate economic phenomena

  2. pricing of essential commodities

  3. changing in consumer preference

  4. consumer purchasing patterns
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The term ‘Macro’ means large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc. 

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

____________ is outside the domain of macroeconomics.

  1. Consumer behaviour

  2. National income

  3. Economic growth

  4. Balance of payment and trade
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

  • Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. 
  • It studies about the performance of the economy as a whole and not of any individual firm or business. 
  • Thus national income, economic growth and balance of payments and trade are the concern of macro economics whereas consumer behavior is the concern of micro economics.  


Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Study of the overall behavior of the economy is called ______.

  1. normative economics

  2. positive economics

  3. macroeconomics

  4. microeconomics
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Macroeconomics
1. It is that part of economics which deals with the economic issues that take place on a large scale. 
2. It takes into account aggregate demand and aggregate supply.  
3. It aims to determine income and employment level of the economy. 
4. Example: National income, National output.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

___________ is the study that considers aggregate behaviour, and the study of the sum of individual economic decisions.

  1. Normative economics

  2. Positive economics

  3. Macroeconomics

  4. Microeconomics
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Macroeconomics
1. It is that part of economics which deals with the economic issues that take place on a large scale. 
2. It takes into account aggregate demand and aggregate supply.  
3. It aims to determine income and employment level of the economy. 
4. Example: National income, National output.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Which of these is outside the scope of Micro economics?

  1. Consumer behaviour

  2. National income

  3. Factor pricing

  4. None
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Calculation of national income falls under the concept of macro-economics.Hence it is outside the concept of Micro economics.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

The study of impact of increase in money supply on general price level of employment is the subject matter of ____________.

  1. normative economics

  2. positive economics

  3. macroeconomics

  4. microeconomics
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The study of increase in money supply or general price or level of employment is the subject matter of macro economics. 

The term ‘Macro’ is derived from the Greek word 'Makro' meaning large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc.  

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

The terms micro economics and macro economics were coined by ______________.

  1. Prof. A Samuelson

  2. Griffin

  3. Eagle

  4. Prof. Ragner Frisch
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Ragnar Anton Kittil Frisch was a Norwegian economist . He coined the term micro economics and macro economics .Macro economics deals the economy as a whole. In micro economics , study of economics is done from an individual point of view.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

All of the following, except ___________, are subject matter of Micro Economics.

  1. determination of national income

  2. study of consumer behaviour

  3. study of behaviour of firm

  4. price equilibrium analysis
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Determination of national income is a subject matter of Macro Economics. National income refers to the total amount of money earned by an economy.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Level of employment, GDP growth, population growth etc. are the subject matter of ____________.

  1. normative economics

  2. positive economics

  3. macroeconomics

  4. microeconomics
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Level of employment, GDP growth, population growth, etc. are the subject matter of Macroeconomics. This is because macroeconomics deals with the issues of the economy which occur on a large scale like the ones mentioned. It takes into account the general economic factors to know about the performance of an economy. Macroeconomics includes regional, national and global economies. 

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

_____ is not a subject matter of micro economics.

  1. Unfavourable gender ratio

  2. Consumer behaviour

  3. Factor pricing

  4. Effect on supply position due to reduction in market price
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Micro economics is a field of economics that deals from an individual point of view. Therefore, unfavorable gender ratio is not a subject matter of micro economics as the economic activities of an individual is not affected due to this.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Micro economic deals with all, except _________.

  1. consumer behaviour

  2. firm's behaviour

  3. economic growth

  4. individual demand
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Economic growth, that is all over development of an economy and increase in GDP ,etc - these are the concepts of macro economics since it includes the economy as a whole. It does not deal with a particular unit of production .

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Micro economics deals with _______.

  1. inflation in the country

  2. the economic behaviour of an individual unit

  3. the per capita income

  4. the problems of poverty and unemployment in the country.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Microeconomics
1. It is that part of economics which deals with the individual units of the economy. 
2. It takes into account the demand and supply of individual units. 
3. It aims to determine the price of a product using the factors of production.
4. Example: Individual income and Individual output.