Tag: introduction to micro economics

Questions Related to introduction to micro economics

To control high rate interest rates, coercive collections and illegal insurance practices by the Micro Finance Institutes, Andhra Pradesh Government passed Andhra Pradesh Microfinance Institutions (Regulations of Money Lending) Act in?

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

  1. 2014

  2. 2013

  3. 2005

  4. 2011

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Correct Option: D

When the rate of money inflation increases then the prices of commodities _____.

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

  1. Increase

  2. Decrease

  3. Remain constant

  4. Do not change

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Correct Option: A
Explanation:

Inflation affects economies in various positive and negative ways. The negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing the real burden of public and private debt, keeping nominal interest rates above zero so that central banks can adjust interest rates to stabilize the economy, and reducing unemployment due to nominal wage rigidity.

Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed?

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

  1. Ponzi schemes

  2. Micro Finance System

  3. Money Laundering Schemes

  4. Money tampering finance

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Correct Option: B

Mixed economy means an economy where ______________________.

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

  1. Both agriculture and industry are equally promoted by the State

  2. There is co-existence of public sector along with private sector

  3. There is importance of small scale industries along with heavy industries

  4. Economy is controlled by military as well as civilian rulers

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Correct Option: B

___________ is that branch of economics that concern how individual households ad firms takes economic decisions to allocate scarce resources.

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

  1. Marcoeconomics

  2. Microeconomics

  3. Positive economics

  4. Normative economics

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Correct Option: B
Explanation:

Microeconomics

  • Micro in Greek means 'small'. 
  • It is that part of economics which deals with the individual units of the economy. 
  • It takes into account the demand and supply of individual units. 
  • It aims to determine the price of a product using the factors of production.
  • Example: Individual income and Individual output.

The study of the behaviour of firms, individual markets, and household is called ___________.

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

  1. national economics

  2. positive economics

  3. macroeconomics

  4. microeconomics

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Correct Option: D
Explanation:

 Microeconomics
1. It is that part of economics which deals with the individual units of the economy. 
2. It takes into account the demand and supply of individual units. 
3. It aims to determine the price of a product using the factors of production.
4. Example: Individual income and Individual output.

The term micro-economics is derived from Greek prefix mikro which means ____________.

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

  1. aggregate

  2. consumer choices

  3. biggest

  4. small

Show answer
Correct Option: D
Explanation:

Microeconomics

  • Micro in Greek means 'small'. 
  • It is that part of economics which deals with the individual units of the economy. 
  • It takes into account the demand and supply of individual units. 
  • It aims to determine the price of a product using the factors of production.
  • Example: Individual income and Individual output.

To study the impact of rise in the price of edible oils on the demand of edible oil is the concern 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. macroeconomics

  2. microeconomics

  3. positive economics

  4. normative economics

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Correct Option: B
Explanation:

To study the impact of rise in the price of edible oils on the demand of edible oil is the concern of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy. It takes into account the demand and supply of individual units and helps in studying the prices of products according to it. 

Which of these is a subject matter of 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. Interaction of producers and consumers in a market

  2. Aggregate demand

  3. Level of full employment

  4. Impact of variation in CRR on money supply

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Correct Option: A
Explanation:

Interaction of producers and consumers in a market is the subject matter of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy. It takes into account the demand and supply of individual units. All the other options are the concern of macroeconomics.

Which of the following issues are related to 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. Impact of crude price hike on inflation

  2. Impact of change in bank rate on bank savings and investment

  3. Impact of information technology on economic growth

  4. Impact of shortage of wheat production on wheat price

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Correct Option: D
Explanation:

Impact of a shortage of wheat production on wheat price comes under the domain of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy. It takes into account the demand and supply of individual units and helps in studying the prices of products according to it. All the other options are the concern of macroeconomics as they take into account the larger picture into consideration.