Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

__________ may be defined as that branch of economic analysis which studies the behaviour of 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. Microeconomics

  2. Macroeconomics

  3. Individual economics

  4. Household economics

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Correct Option: B
Explanation:

Macroeconomics is the branch of economics that studies the aggregate units of the economy like national income, employment, etc. It uses lumping method for the purpose of economic study. For example, under lumping method we study the general price level that is prices of all products, and not prices of individual products.

________is a study in aggregates.

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

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Correct Option: A
Explanation:

Macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, aggregate employment and unemployment , inflation etc. Therefore, it studies group variables and not individual variables. 

We mainly study the following in macro economics-
I. National income and output
II. General price level
III. Balance of trade and payments
Select the correct answer from the options given below -

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 & II

  2. II & III

  3. I & III

  4. All of the above

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Correct Option: D
Explanation:

Macroeconomics studies economic relationships or economic problems or economic issues at the level of the economy as a whole. Thus national income and output, general price level and balance of trade and payments- all are studied under macro economics since they all involve the study of the economic aggregates.

The publication of______General Theory, in 1936, gave a strong impetus to the growth and development of modern macro 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. Keynes

  2. Robbins

  3. Marshall

  4. Ragner Frisch

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Correct Option: A
Explanation:

Keynes general theory focused on income and employment of the nation which affects aggregate demand and supply of the nation which was the main branch of macro economics after national income.

We mainly study the following in Macro-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. External value of money

  2. Consumer behaviour

  3. All (A), (B) & D)

  4. Location of industry

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Correct Option: A
Explanation:

Macro economics has a separate branch known as exchange rate systems that deals in the study of external value of money in comparison to the domestic currency and how these fluctuations affects a nation's growth and development. 

We mainly study the following in 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. General price level

  2. National income and output

  3. Location of industry

  4. Employment and economic growth

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Correct Option: C
Explanation:

In micro economics, summation of various similar markets form an industry which is located at various places according to the required resources available there and demand and supply of the commodities prevailing there. 

Microeconomics and macroeconomics are not independent approaches to economic analysis but they are complementary to each other.

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

  1. False

  2. True

  3. Partly true

  4. Partly false

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Correct Option: B
Explanation:

Micro and macro approaches of economics are very dependent on each other. To know well about the working of an economy, on must have knowledge of both the branches of economics. It can be said that macroeconomics uses the principles of microeconomics as its foundation and the former is a magnified version of the latter.

We mainly study the following in macroeconomics:

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

  1. External value of money

  2. Product pricing

  3. National income and output

  4. Both (A) and (C)

Show answer
Correct Option: D
Explanation:

Macroeconomics studies all the aggregate units in the economy which include the value and dimensions of money, national income and output, employment, inflation, etc.

Product Pricing is a subject matter of Microeconomics.

We mainly study the following in 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. Economic conditions of a section of the people

  2. General price level

  3. Balance payments

  4. Employment and economic growth

Show answer
Correct Option: A
Explanation:

Micro economics deals in the study of individual variables that influence the market. Therefore, study of consumer and producer behaviour for different commodities is the main aspect of microeconomics as it focuses on how different sections affect the market. 

Macro economics is the study of behaviour 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. multiple units

  2. individual units

  3. large aggregates

  4. none of the above

Show answer
Correct Option: C
Explanation:

Macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, aggregate employment and unemployment, inflation etc. Therefore, it studies group variables and not individual variables.