Tag: introduction to micro economics

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Questions Related to introduction to micro 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

When we are studying how a producer fixes the prices of his products we are studying:

  1. Macro Economics

  2. Micro Economics

  3. Both (a) & (b)

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

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.

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

Macro economics is also called _____________ economics.

  1. applied

  2. aggregate

  3. experimental

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
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 aggregate or national variables and not individual variables.

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 the following is related to micro economics?

  1. Inflation in the economy

  2. Problem of unemployment

  3. National income

  4. Income from the railways to the government
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

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

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.