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

Which is the most significant factor of revenue expenditure of Central Government?

  1. Defence expenditure

  2. Subsidy

  3. Interest payment

  4. Salaries of employees
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Revenue Budget consists of the revenue receipts of Government and the expenditure met from these revenues. An expenditure which neither creates assets nor reduces liability is called Revenue Expenditure. The various types of the expenditure on the revenue amount according as their importance are:

(1) Interest payments on public debit,

(2) Civil administration,

(3) Defense,

(4) Subsidies on food, fertilizers, exports and

(5) Social services such as education, health, etc.

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

Who developed the innovation theory of profit?

  1. Schumpeter

  2. Haley

  3. Prof. Knight

  4. Karl Marx
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The 'Innovation Theory of Profit' was proposed by Joseph. A. Schumpeter who believed that an entrepreneur can earn economic profits by introducing successful innovations.

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 terms "Microeconomics" was coined by ___________.

  1. Alfred Marshall

  2. Ragnar Nurkse

  3. Ragnar Frisch

  4. J M Keynes
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The term "Microeconomics" was coined by Ragnar Frisch in the year 1933. It is one of fields in economics that deals with the study of individual units in the 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

All are subject matter of macro-economics except _________.

  1. hardening of interest rates

  2. strengthening of rupee against dollar

  3. stagnation of economic growth

  4. increase in maximum selling price of fertilizers
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
  • All these options except for option D are the concerns of Macro economics.
  • The term ‘Macro’ means large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc. 
  • Whereas Increase in maximum selling price of fertilizers is a micro issue and comes under the domain 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

__________ is/are not the concerns of microeconomics.

  1. Rates of inflation

  2. Population growth

  3. Rates of unemployment

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

All these options are the concerns of Macro economics. The term ‘Macro’ means large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc. 

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 focus of macroeconomics policy is on _________.

  1. price determination in specific markets

  2. structure and conduct of market operations

  3. addressing the problem of unemployment and inflation

  4. equity and efficiency
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
The twin- focus of macroeconomics policy are-
1)Equity- Fair and impartial treatment should be provided to all the citizens according to their ability.
2)Efficiency- Wastage of resources should be minimised and resources should be used in the most efficient way in the economy to yield a better productivity.
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 term microeconomics was coined by __________.

  1. Prof. A Samulson

  2. Giffen

  3. Prof. Ragner Frisch

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

The term microeconomics was coined by Prof. Ragnar Frisch. In the Greek language ‘Mickros’ means very small. And thus microeconomics concerns itself with the small and individual part of the 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

A study of how increase in the corporate income tax rate will affect the national unemployment rate is an example of ____________.

  1. macro economics

  2. descriptive economics

  3. micro economics

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

Government policies and rate of unemployment in an economy are the subject matter of macroeconomics.Hence, how increase in the corporate tax will hit the unemployment rate of an economy should be studied under the sphere of macroeconomics as it deals the economy as a whole.

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

From the national point of view which of the following indicates micro approach?

  1. Per capital income of India

  2. Under employment in agricultural sector

  3. Lock out in TELCO

  4. Total savings in India
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

'Lock out in TELCO' is micro approach, because microeconomics deals with individual part of the society rather than all the units combined.