Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

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. price theory

  2. slicing method

  3. product theory

  4. both (a) and (b)

Show answer
Correct Option: D
Explanation:

Micro economics is also known as Price theory because it takes into account the demand and supply of individual units and thus aims to determine the price of a product using the factors of production.

It is also called the Slicing method as it is used in Microeconomics. This is because it divides the economy in slices, parts or individual units for the purpose of in-depth study. And hence the name slicing method.

"During the period of boom when aggregate demand, national income and prices are high, entrepreneurs tend to make high profits."
This statement implies _______.

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

  1. effect of micro economic variables on macro variables

  2. effect of macro economic variables on micro variables

  3. interdependence of micro and macroeconomics

  4. both (b) and (c).

Show answer
Correct Option: D
Explanation:

When boom period is going on in the economy, the macro level economic growth is reflected positively in the micro variables of the economy, due to which all the inter-related sectors enjoy the benefits. Therefore, it showcases the relation between micro and macro economics.

Which of the following does not suggest a macroeconomic approach for India?

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

  1. Determining the GNP of India.

  2. Finding the causes of failure of X and Co.

  3. Identifying the causes of inflation in India.

  4. Analyse the causes of failure of industry in providing large scale employment.

Show answer
Correct Option: B
Explanation:

Macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, employment, inflation etc. Therefore, it does not deal in individual variables like X and Co , it is micro approach because micro deals with individual part of the society.

Which of the following is defined as branch of economic analysis that studies the economic behaviour of the individual unit, a particular household, or a particular firm?

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. Micro economics

  3. National economics

  4. General economics

Show answer
Correct Option: B
Explanation:
Microeconomics is defined as "The study of the economic choices individuals and firms make and of how these choices create markets." 

The study of microeconomics looks at specific markets individually and in great detail. Thus it will tend to examine micro variables such as the demand and supply decisions specific to a particular market or good. Thus its variables of concern will include how individual firms, individual workers, individual consumers, and individual investors interact and make decisions in the marketplace.

 It will not be concerned with the aggregate market demand, or any other aggregate variables that treat the whole economy as one unit. 

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

Show answer
Correct Option: C
Explanation:

Microeconomics deals with the study of individual demand, supply, income, production, etc. so lockout in TELCO which is an individual firm in the industry is a micro concept.

Macro economics is the study 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. All aspects of scarcity

  2. The national economy and the global economy as a whole

  3. Big businesses

  4. The decisions of individual businesses and people

Show answer
Correct Option: B
Explanation:

Macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, employment, inflation etc. It simply focusses on the economy as a whole. Therefore, it is the study of a nation's economy as well as its relation with other countries. 

_____ is a study of one particular unit rather than all the units combined together.

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. Micro economics

  3. Both (A) and (B)

  4. Social economics

Show answer
Correct Option: B
Explanation:
Microeconomics is defined as "The study of the economic choices individuals and firms make and of how these choices create markets." 

The study of microeconomics looks at specific markets individually and in great detail. Thus it will tend to examine micro variables such as the demand and supply decisions specific to a particular market or good. Thus its variables of concern will include how individual firms, individual workers, individual consumers, and individual investors interact and make decisions in the marketplace.

 It will not be concerned with the aggregate market demand, or any other aggregate variables that treat the economy as one unit. 

The branch of economic theory that deals with the problem of allocation of resources 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. Micro economic theory

  2. Macro economic theory

  3. Econometrics

  4. None of the above

Show answer
Correct Option: A
Explanation:

Micro economics deals with the individual problems of production which involves cost and production function. Therefore, allocation of resources is a part of this branch.

A study of how an 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:

Macroeconomics deals with all the issues affecting the national economy.


For example, an increase in the direct tax such as corporate income tax will increase the cost of the corporate sector. 

Thus, in order to compensate their costs, one of the measure may be to lessen the employees which will further affect the unemployment in the economy.

Micro and Macro Economics were coined by ________during the twenties, and since then they are frequently used by economists for economic analysis.

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. Keynes

  2. Prof. Robbins

  3. Prof. Marshall

  4. Prof. Ragner Frisch

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Correct Option: D
Explanation:

Prof. Ragnar Frisch was a Norwegian economist who was best known for founding the various disciplines of econometric and for coining the two common terms i.e. micro and macro economics which is the most widely used terms in modern economics.