Tag: microeconomics and macroeconomics : introduction

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Questions Related to microeconomics and macroeconomics : introduction

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 objective of macro-economics is to study about _______.

  1. problems, principles and policies relating to full employment of available resources

  2. problems, principles and policies and policies relating to optimum allocation of resources

  3. growth of resources

  4. both a and c
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Macro economics is a field of economics which deals with the economy as a whole. The objective of the macro economics is to maximize the welfare of an economy. It includes principles and policies relating to full employment of available resources as well as the growth of resources.

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 microeconomics includes the study of ___________.

  1. Output and employment growth as markets expand in reaction to a rising price level in the economy

  2. How firms, workers, consumers, and investors interact and make decisions in the marketplace

  3. The number of new jobs and income created as the economy grows

  4. Business investment and government spending in the marketplace
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Microeconomics refers to the field of study which deals from an individual point of view. For example, from consumer's point of view. It deals with the process regarding the functioning of the market, consumer's behaviour, interaction of the investors, 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

If there is an increase in income levels, the ______________ increases.

  1. Propensity to consume

  2. Propensity to save

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As income levels rise, individuals have more disposable income, which leads to an increase in both consumption and savings. Therefore, the propensity to save increases as income increases.

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 suggests a micro approach for India?

  1. Identifying the causes of large scale unemployment in India.

  2. Input output analysis for the economy.

  3. Finding causes of high turnover in ABC Ltd.

  4. Analysing distribution of coal in the country.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Finding causes of high turnover in ABC Ltd. is a micro approach as it is related to a single firm and not to 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

Micro economics is related to ______________.

  1. demand

  2. supply

  3. price mechanism

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

Microeconomics deals with study of individuals, individual firms, individual industries, individual markets, etc. It, thus, deals with demand, supply and price mechanism.

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

Economists who are concerned about the behaviour of individual households, firms and industries are studying __________.

  1. microeconomics

  2. macroeconomics


  3. nanoeconomics

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

Microeconomics is the study of particular firm, particular household, individual price, wages, income, industry and particular commodity.

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

Consider the following statements about the idea of 'micro-finance' in India and select the correct ones using the code give below:
1. Micro-finance is a small-scale financial intermediation, inclusive of savings, credit, insurance, business services and technical support provided to the needy borrower.
2. The thrust of the micro finance initiative is to channelize production and consumption credit in multiple does based on the absorption capacity of the prospective borrower.
3. It has evolved through following different models at different times - a 'charity based model' to a 'third-based model' and finally to the 'trust and creditworthiness model'.
4. It was in Australia where evolved the link between microfinance institutions and the formal financial institutions.

  1. 1,2 and 3

  2. 2,3 and 4

  3. 1,3 and 4

  4. 1,2,3 and 4
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Micro-finance (MF) is a small-scale financial intermediation, inclusive of savings, credit, insurance, business services and technical support provided to the needy borrower. The thrust of the MF initiative is to channelize production and consumption credit in multiple doses based on the absorption capacity of the prospective borrower. 


The presumption here is that the borrowers possess basic financial literacy and requisite capacity to operate their self-determined economic ventures profitably. The formal existence of MF was found in 1972. A charity based model (interest free loans where repayment was based on peer pressure) of MF was evolved in Ireland. Later on, in Germany, a thrift-based model was developed with establishment of savings funds. 

Bangladesh Grameen model is based on the principle of trust and creditworthiness of poor with both, obligatory and voluntary saving schemes. The Foundation for Development Cooperation (FDC) of Australia evolved a research project, The Banking with the Poor (BWTP) network to link between microfinance with formal financial institutions. 

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 also known as ____________.

  1. Income theory

  2. Price theory

  3. Expenditure theory

  4. Savings theory
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Micro economics is also called as the Price theory. It studies the behavior of individual consumers, producers etc.
 It explains consumption, production, allocation and the pricing of goods.

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 theory is generally included under micro-economics?

  1. Price Theory

  2. Income Theory

  3. Employment Theory

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Price theory, also known as microeconomics, is concerned with the economic behaviour or individual consumers, producers, and resource owners. It explains the production, allocation, consumption and pricing of goods and services.