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.

Macroeconomics fundamentalsInternational trade theoriesFiscal policy debatesEconomic regulationLabor theory of value

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

Micro economics does not cover __________.

  1. consumer behaviour

  2. factor pricing

  3. general price level

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

Micro economics deals the study of economics from an individual point of view. General price level is a subject matter of macro economics. Macro economics deal with the economy as a whole.

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 branch of economic theory that deals with the problem of allocation of resources is ___________.

  1. macro economics theory

  2. micro economics theory

  3. econometrics

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Macro economics theory deals with the field of economy which studies an economy as a whole. It does not look from an individual's point of view. The problem of choice or the problem of allocation of resources is addressed by the the theories of macro 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 objective of macro-economics is to study about _______.

  1. problems, principles and policies relating to full employment of available resources

  2. problems, principles and policies and policies relating to optimum allocation of resources

  3. growth of resources

  4. both a and c
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Macro economics is a field of economics which deals with the economy as a whole. The objective of the macro economics is to maximize the welfare of an economy. It includes principles and policies relating to full employment of available resources as well as the growth of resources.

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 microeconomics includes the study of ___________.

  1. Output and employment growth as markets expand in reaction to a rising price level in the economy

  2. How firms, workers, consumers, and investors interact and make decisions in the marketplace

  3. The number of new jobs and income created as the economy grows

  4. Business investment and government spending in the marketplace
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Microeconomics refers to the field of study which deals from an individual point of view. For example, from consumer's point of view. It deals with the process regarding the functioning of the market, consumer's behaviour, interaction of the investors, 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

Micro economics is related to ______________.

  1. demand

  2. supply

  3. price mechanism

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Microeconomics deals with study of individuals, individual firms, individual industries, individual markets, etc. It, thus, deals with demand, supply and price mechanism.

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

Economists who are concerned about the behaviour of individual households, firms and industries are studying __________.

  1. microeconomics

  2. macroeconomics


  3. nanoeconomics

  4. neoeconomics
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Microeconomics is the study of particular firm, particular household, individual price, wages, income, industry and particular commodity.

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 is also known as ____________.

  1. Income theory

  2. Price theory

  3. Expenditure theory

  4. Savings theory
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Micro economics is also called as the Price theory. It studies the behavior of individual consumers, producers etc.
 It explains consumption, production, allocation and the pricing of goods.

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 theory is generally included under micro-economics?

  1. Price Theory

  2. Income Theory

  3. Employment Theory

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Price theory, also known as microeconomics, is concerned with the economic behaviour or individual consumers, producers, and resource owners. It explains the production, allocation, consumption and pricing of goods and services.
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 "Microeconomics" was coined by ___________.

  1. Alfred Marshall

  2. Ragnar Nurkse

  3. Ragnar Frisch

  4. J M Keynes
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The term "Microeconomics" was coined by Ragnar Frisch in the year 1933. It is one of fields in economics that deals with the study of individual units in the 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

__________ is/are not the concerns of microeconomics.

  1. Rates of inflation

  2. Population growth

  3. Rates of unemployment

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All these options are the concerns of Macro economics. 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

The focus of macroeconomics policy is on _________.

  1. price determination in specific markets

  2. structure and conduct of market operations

  3. addressing the problem of unemployment and inflation

  4. equity and efficiency
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
The twin- focus of macroeconomics policy are-
1)Equity- Fair and impartial treatment should be provided to all the citizens according to their ability.
2)Efficiency- Wastage of resources should be minimised and resources should be used in the most efficient way in the economy to yield a better productivity.
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

A study of how increase in the corporate income tax rate will affect the national unemployment rate is an example of ____________.

  1. macro economics

  2. descriptive economics

  3. micro economics

  4. normative economics
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Government policies and rate of unemployment in an economy are the subject matter of macroeconomics.Hence, how increase in the corporate tax will hit the unemployment rate of an economy should be studied under the sphere of macroeconomics as it deals the economy as a whole.

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 covers the study of ___________.
(i) Consumer's behaviour
(ii) Producer's equilibrium
(iii) Fiscal system of an economy
(iv) Factor pricing

  1. i and ii

  2. ii and iv

  3. i, ii and iii

  4. i, ii and iv
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Micro economics deals with the individual approach of various parties involved in an economy, i.e, consumer, producer, price, and cost. Therefore, it studies consumer's behaviour, producer's equilibrium, and factor pricing. 

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

Macro-economics is also known as __________.
(i) Method of Lumping
(ii) Price Theory
(iii) General equilibrium analysis
(iv) Aggregative Economics

  1. i and ii only

  2. iii and iv only

  3. i, iii and iv only

  4. ii, iii and iv only
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Macro economics relates to the study of economics as a whole in an economy. It reflects general equilibrium analysis of a set of people involved in the exchange mechanism i.e, as a market. Therefore, it measures the aggregates of all the micro units in the economy.