Economics · General Awareness

Economics Concepts and Theories

1,710 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

___________ 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.

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.