Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

Micro economics is concerned with ___________.

  1. consumer behaviour

  2. product pricing

  3. factor pricing

  4. all of the above


Correct Option: D
Explanation:
Micro economics deals with the study of economics from the view point of individual unit. When economic problems are studied considering small economic units like an individual consumer, or an individual producer, we are referring to micro economics. 
Components of microeconomics:
1) Theory of consumer behaviour: This deals with the law of demand and consumer equilibrium.
2) Theory of producer behaviour: This deals with the law of supply and producer equilibrium.
3) Factor pricing: This refers to the determination of prices of factor of production in the factor market.

Which of these is a part of micro economics?

  1. Factor Pricing

  2. National Income

  3. Balance of Payment

  4. None of the above


Correct Option: A
Explanation:

Factor pricing refers to the determination of the factors of production in the factor market. Microeconomics deals with the study of economics from the individual point of view. Thus factor pricing is a part of micro economics.