Tag: business economics and quantitative methods

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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 study of economics in divided into:

  1. Deductive and inductive

  2. Micro and macro economics

  3. Positive and normative

  4. An art and science
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Economics is divided into two parts:

  • Micro economics which deals in the study of individual variables and their relation with each other.
  • Macro economics that  deals in the study of collective or aggregate variables and how they influence the whole 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

'Ceteris paribus' clause in the law of demand does not mean ___________.

  1. the price of the commodity does not change

  2. the price of its substitutes does not change

  3. the income of the consumer does not change

  4. the price of complementary goods does not change
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

'Ceteris paribus' means 'other things being equal'. This clause in the law of demand refers to other things except price being equal. Hence, it does not mean the price of the commodity does not change, under the law of demand.

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

Problems of unemployment, illiteracy, etc. are studied under which branch of economics?

  1. Macroeconomics

  2. Microeconomics

  3. Wealth economics

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

Macro economics deals in the overall problems of the economy that involves the study of national aggregates. Problems of unemployment, illiteracy, etc are studied under macro economics since these include economy as a whole and not from the view point of an individual unit.

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 part of economics is also called Theory of Income and Employment?

  1. Macroeconomics

  2. Microeconomics

  3. Wealth economics

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

Macro economics deals with the study of economics as a whole and the study of collective or aggregate variables like national income and how they influence the whole economy. Theory of income and employment explains how aggregate demand and supply decide the level of income and employment in an economy as a whole. Thus, it is a part of macro 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

Which economics deals with the study of behaviour of individual decision making units?

  1. Macroeconomics

  2. Microeconomics

  3. Wealth economics

  4. Monetary economics
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Microeconomics deals with the study of economics from the viewpoint of an individual unit and the study of individual variables and their relation with each other that influences a market place and its factors. 

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
Scarcity of resources exists ___________.

  1. at the micro level

  2. at the macro level

  3. both A & B

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Scarcity of resources exist at both the macro and micro levels due to never ending human wants. In the situation of scarcity of resources, at macro level, the economy is able to maximize the welfare along with the rapid pace of economic growth. While, at micro level, an individual maximizes his satisfaction as consumers and maximizes his profit as producers.

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
Economic problem arises due to the fact that ____________.

  1. resources are scarce

  2. human wants are unlimited

  3. resources have alternative uses

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All economic problems arises due to unlimited human wants and limited resources. Moreover, these resources have alternative uses and wants keep on increasing each day. This economic problem is also known as problem of choice or the problem of allocating resources to alternative uses.

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

Example of micro economic variable is:

  1. Wholesale price index

  2. National income

  3. Market demand

  4. Aggregate demand
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Microeconomics is defined as "The study of the economic choices individuals and firms make and of how these choices create markets." Thus 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 specific to a particular market or good. It will not be concerned with the aggregate market demand, or any other aggregate variables that treat the economy as one unit. 

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

Microeconomics does not deal with the aggregate economy.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Microeconomics deals with the aggregates of economic issues relating to small economic units. For example, market demand is the aggregation of individual demand.

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 these are a part of subject matter of macroeconomics?

  1. Problem of unemployment in India

  2. Rising price level in the country

  3. Increase in disparities of income

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The subject matter of macroeconomics includes determination of the level of employment, national  income and price level in the economy.

Macroeconomics is a general equilibrium analysis which studies an economic phenomenon by taking all the aggregate units in the economy into consideration.