Tag: introduction to micro economics

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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

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. 

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

Micro economics is concerned with ___________.

  1. consumer behaviour

  2. product pricing

  3. factor pricing

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
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.
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 is a part of micro economics?

  1. Factor Pricing

  2. National Income

  3. Balance of Payment

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