Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

Which of the following suggests a micro approach for India?

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  1. Identifying the causes of large scale unemployment in India.

  2. Input output analysis for the economy.

  3. Finding causes of high turnover in ABC Ltd.

  4. Analysing distribution of coal in the country.

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Correct Option: C
Explanation:

Finding causes of high turnover in ABC Ltd. is a micro approach as it is related to a single firm and not to the whole economy.

Micro economics is related to ______________.

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

  1. demand

  2. supply

  3. price mechanism

  4. all of the above

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Correct Option: D
Explanation:

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

___________ is also known as price theory.

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  1. Micro economics

  2. Macro economics

  3. Both A & B

  4. None of the above

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Correct Option: A
Explanation:

Micro economics is the study of individual behaviour and is also known as price theory.

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

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

  1. microeconomics

  2. macroeconomics


  3. nanoeconomics

  4. neoeconomics

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Correct Option: A
Explanation:

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

Consider the following statements about the idea of 'micro-finance' in India and select the correct ones using the code give below:
1. Micro-finance is a small-scale financial intermediation, inclusive of savings, credit, insurance, business services and technical support provided to the needy borrower.
2. The thrust of the micro finance initiative is to channelize production and consumption credit in multiple does based on the absorption capacity of the prospective borrower.
3. It has evolved through following different models at different times - a 'charity based model' to a 'third-based model' and finally to the 'trust and creditworthiness model'.
4. It was in Australia where evolved the link between microfinance institutions and the formal financial institutions.

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

  1. 1,2 and 3

  2. 2,3 and 4

  3. 1,3 and 4

  4. 1,2,3 and 4

Show answer
Correct Option: D
Explanation:

Micro-finance (MF) is a small-scale financial intermediation, inclusive of savings, credit, insurance, business services and technical support provided to the needy borrower. The thrust of the MF initiative is to channelize production and consumption credit in multiple doses based on the absorption capacity of the prospective borrower. 


The presumption here is that the borrowers possess basic financial literacy and requisite capacity to operate their self-determined economic ventures profitably. The formal existence of MF was found in 1972. A charity based model (interest free loans where repayment was based on peer pressure) of MF was evolved in Ireland. Later on, in Germany, a thrift-based model was developed with establishment of savings funds. 

Bangladesh Grameen model is based on the principle of trust and creditworthiness of poor with both, obligatory and voluntary saving schemes. The Foundation for Development Cooperation (FDC) of Australia evolved a research project, The Banking with the Poor (BWTP) network to link between microfinance with formal financial institutions. 

Micro Economics is also known as ____________.

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

  1. Income theory

  2. Price theory

  3. Expenditure theory

  4. Savings theory

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Correct Option: B
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.

Which theory is generally included under micro-economics?

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

  1. Price Theory

  2. Income Theory

  3. Employment Theory

  4. None of the above

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Correct Option: A
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.

Which is the most significant factor of revenue expenditure of Central Government?

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

  1. Defence expenditure

  2. Subsidy

  3. Interest payment

  4. Salaries of employees

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Correct Option: C
Explanation:

Revenue Budget consists of the revenue receipts of Government and the expenditure met from these revenues. An expenditure which neither creates assets nor reduces liability is called Revenue Expenditure. The various types of the expenditure on the revenue amount according as their importance are:

(1) Interest payments on public debit,

(2) Civil administration,

(3) Defense,

(4) Subsidies on food, fertilizers, exports and

(5) Social services such as education, health, etc.

Who developed the innovation theory of profit?

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

  1. Schumpeter

  2. Haley

  3. Prof. Knight

  4. Karl Marx

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Correct Option: A
Explanation:

The 'Innovation Theory of Profit' was proposed by Joseph. A. Schumpeter who believed that an entrepreneur can earn economic profits by introducing successful innovations.

The terms "Microeconomics" was coined by ___________.

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  1. Alfred Marshall

  2. Ragnar Nurkse

  3. Ragnar Frisch

  4. J M Keynes

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Correct Option: C
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