Tag: economic ideas of j k mehta

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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

The branch of economic theory that deals with the problem of allocation of resources is ________________.

  1. Micro economic theory

  2. Macro economic theory

  3. Econometrics

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

Micro economics deals with the individual problems of production which involves cost and production function. Therefore, allocation of resources is a part of this branch.

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 an 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

Macroeconomics deals with all the issues affecting the national economy.


For example, an increase in the direct tax such as corporate income tax will increase the cost of the corporate sector. 

Thus, in order to compensate their costs, one of the measure may be to lessen the employees which will further affect the unemployment 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

Micro and Macro Economics were coined by ________during the twenties, and since then they are frequently used by economists for economic analysis.

  1. Prof. Keynes

  2. Prof. Robbins

  3. Prof. Marshall

  4. Prof. Ragner Frisch
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Prof. Ragnar Frisch was a Norwegian economist who was best known for founding the various disciplines of econometric and for coining the two common terms i.e. micro and macro economics which is the most widely used terms in modern 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

__________ may be defined as that branch of economic analysis which studies the behaviour of all the units combined together.

  1. Microeconomics

  2. Macroeconomics

  3. Individual economics

  4. Household economics
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Macroeconomics is the branch of economics that studies the aggregate units of the economy like national income, employment, etc. It uses lumping method for the purpose of economic study. For example, under lumping method we study the general price level that is prices of all products, and not prices of individual products.

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 a study in aggregates.

  1. Macro economics

  2. Micro economics

  3. Both (a) and (b)

  4. Social economics
Reveal answer Fill a bubble to check yourself
A 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 group 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

We mainly study the following in macro economics-
I. National income and output
II. General price level
III. Balance of trade and payments
Select the correct answer from the options given below -

  1. I & II

  2. II & III

  3. I & III

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

Macroeconomics studies economic relationships or economic problems or economic issues at the level of the economy as a whole. Thus national income and output, general price level and balance of trade and payments- all are studied under macro economics since they all involve the study of the economic aggregates.

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 publication of______General Theory, in 1936, gave a strong impetus to the growth and development of modern macro economics.

  1. Keynes

  2. Robbins

  3. Marshall

  4. Ragner Frisch
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Keynes general theory focused on income and employment of the nation which affects aggregate demand and supply of the nation which was the main branch of macro economics after national income.

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

We mainly study the following in Macro-Economics: 

  1. External value of money

  2. Consumer behaviour

  3. All (A), (B) & D)

  4. Location of industry
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Macro economics has a separate branch known as exchange rate systems that deals in the study of external value of money in comparison to the domestic currency and how these fluctuations affects a nation's growth and development. 

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

We mainly study the following in Micro-Economics:

  1. General price level

  2. National income and output

  3. Location of industry

  4. Employment and economic growth
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In micro economics, summation of various similar markets form an industry which is located at various places according to the required resources available there and demand and supply of the commodities prevailing there. 

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 and macroeconomics are not independent approaches to economic analysis but they are complementary to each other.

  1. False

  2. True

  3. Partly true

  4. Partly false
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Micro and macro approaches of economics are very dependent on each other. To know well about the working of an economy, on must have knowledge of both the branches of economics. It can be said that macroeconomics uses the principles of microeconomics as its foundation and the former is a magnified version of the latter.