Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

All are subject matter of macro-economics except _________.

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

  1. hardening of interest rates

  2. strengthening of rupee against dollar

  3. stagnation of economic growth

  4. increase in maximum selling price of fertilizers

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Correct Option: D
Explanation:
  • All these options except for option D 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. 
  • Whereas Increase in maximum selling price of fertilizers is a micro issue and comes under the domain of micro-economics.

__________ is/are not the concerns of microeconomics.

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

  1. Rates of inflation

  2. Population growth

  3. Rates of unemployment

  4. All of the above

Show answer
Correct Option: D
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. 

The focus of macroeconomics policy is on _________.

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 determination in specific markets

  2. structure and conduct of market operations

  3. addressing the problem of unemployment and inflation

  4. equity and efficiency

Show answer
Correct Option: D
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.

The term microeconomics was coined by __________.

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

  1. Prof. A Samulson

  2. Giffen

  3. Prof. Ragner Frisch

  4. Eagle

Show answer
Correct Option: C
Explanation:

The term microeconomics was coined by Prof. Ragnar Frisch. In the Greek language ‘Mickros’ means very small. And thus microeconomics concerns itself with the small and individual part of the economy.

At the point of inflexion the marginal product is ____________.

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

  1. Maximum

  2. Minimum

  3. Modest

  4. Optimum

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Correct Option: C

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

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

  1. macro economics

  2. descriptive economics

  3. micro economics

  4. normative economics

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Correct Option: A
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.

From the national point of view which of the following indicates micro approach?

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

  1. Per capital income of India

  2. Under employment in agricultural sector

  3. Lock out in TELCO

  4. Total savings in India

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Correct Option: C
Explanation:

'Lock out in TELCO' is micro approach, because microeconomics deals with individual part of the society rather than all the units combined.

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

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

  1. i and ii

  2. ii and iv

  3. i, ii and iii

  4. i, ii and iv

Show answer
Correct Option: D
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. 

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

  2. iii and iv only

  3. i, iii and iv only

  4. ii, iii and iv only

Show answer
Correct Option: C
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.

Which of the following is not correct?

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

  1. Micro and Macro economics are complementary to each other.

  2. Every macro economic problem requires micro economic analysis for its proper understanding.

  3. Micro-economic behaviour can be added-up to drive macro economic behaviour.

  4. What is macro from the national angle is micro from world angle.

Show answer
Correct Option: C
Explanation:

Microeconomic behaviour cannot be added-up to drive macroeconomic behaviour.

The phenomenon in Microeconomics cannot be generalized for all the units in the economy on an aggregate level.

For example the theory of an individual firm cannot be universally applied to the whole industrial sector in an economy. The theory of individual consumer behaviour is different from the behaviour of the whole economy’s behaviour at the aggregate level. The demand of a single person may not always match with the economy’s aggregate demand.