Tag: business economics and quantitative methods

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Questions Related to business economics and quantitative methods

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 are subject matter of macro-economics except _________.

  1. hardening of interest rates

  2. strengthening of rupee against dollar

  3. stagnation of economic growth

  4. increase in maximum selling price of fertilizers
Reveal answer Fill a bubble to check yourself
D Correct answer
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.
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

The term microeconomics was coined by __________.

  1. Prof. A Samulson

  2. Giffen

  3. Prof. Ragner Frisch

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

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

At the point of inflexion the marginal product is ____________.

  1. Maximum

  2. Minimum

  3. Modest

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

The point of inflection on a total product curve corresponds to the point where the rate of change of output shifts from increasing at an increasing rate to increasing at a decreasing rate. Mathematically, this is where the marginal product reaches its maximum value before starting to diminish.

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

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

  1. Per capital income of India

  2. Under employment in agricultural sector

  3. Lock out in TELCO

  4. Total savings in India
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

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

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.

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 the following is not correct?

  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.
Reveal answer Fill a bubble to check yourself
C Correct answer
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.