Tag: business economics and quantitative methods

Micro economics deals in the study of production of output of individual firms which requires resource allocation as many resources have alternative uses. 

National income refers to the earnings of the citizens of a nation during a given period of time and national output refers to the total production of all the firms of a nation during a given period of time.  We know, that macro economics deal with the study of economics as a whole and hence national income and output is covered in macro economics.

Microeconomics deals with the study of individual variables like firms, workers, consumers, and investors. It also studies the economic condition of a section of people and how it can be improved.

Macro economics studies economics as a whole and not from the view point of an individual. Capital output ratio is the ratio between the capital of all Indian industries to the output yielded by all these industries which is the point of national concern and thus it is included in the study of macro economics.

The inductive method involves the process of reasoning from particular facts to general principle.  

This method consists in deriving conclusions from general truths, taking few general principles and applying them to draw conclusions in general.

Thus, macroeconomics uses inductive method in its study.

In deductive method, logic proceeds from the general to particular.

In a capitalist economy, the economic problems are solved by market forces of demand and supply.

Higher the prices, lower is the quantity demanded of a product. This is a positive statement.

Economists employ the world of in progress associations. Studying finances includes learning to use statistics and to read essentially.  Economics majors are fascinating people both because of their skills and because they can explain why an economic phenomenon occurs and how economic performance strength improves. 

In macroeconomics, the short run is generally defined as the time prospect over which the earnings and price of other input to make are "close," or inflexible, and the long run is defined as the period of time over which these input prices have time to adjust.

Thus, the correct option is C.

Micro economics study economics from the view point of an individual point. Product pricing deals with how producer fixes the prices of his products depending on the market forces and thus it is a component of micro economics.

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 aggregate or national variables and not individual variables.

Income from the railways is related to microeconomics as it is related to a particular department and not the whole economy.