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

In micro economics, we study about __________..

  1. aggregates

  2. national income

  3. demand & supply

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

The main branch of micro economics deals with the change in price of a commodity due to various market forces like quantity demanded and quantity supplied of that commodity in the 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 the following is covered in Micro-Economics?

  1. Consumer Behaviour

  2. External Value of Money

  3. Employment and Economic Growth

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

Consumer behaviour is a micro unit as it measures the behaviour of each consumer when they purchase the commodity which developed many theories like utility analysis, indifference curve analysis 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

Which of the following does not fall under Macro Economics?

  1. Value of Rupee visa-vis US Dollar

  2. Balance of Payments Deficits

  3. Price Fixation by Producer Firm

  4. Low saving rates in the economy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Price fixation by producer firm is a micro variable as it is a individual firm who is deciding the price of the 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

___________ deals with the problem of allocation of resources.

  1. Statistic

  2. Macro-Economic Theory

  3. Econometrics

  4. Micro-Economic Theory
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Micro economics deals in the study of production of output of individual firms which requires resource allocation as many resources have alternative uses. 

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 covered in Macro Economics?

  1. Factor Pricing

  2. National Income and Output

  3. Location of Industry

  4. Study of Firms
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

National income refers to the earnings of the citizens of a nation during a given period of time and national output refers to the total production of all the firms of a nation during a given period of time.  We know, that macro economics deal with the study of economics as a whole and hence national income and output is covered in 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 of the following statements is correct?

  1. Employment and economic growth are studied in micro economics

  2. Micro economics deals with balance of trade and payment

  3. Economic condition of a section of the people is studied in micro economics

  4. External value of money is dealt with in micro economics
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Microeconomics deals with the study of individual variables like firms, workers, consumers, and investors. It also studies the economic condition of a section of people and how it can be improved.

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

State which of the following represents macro from the national point of view.

  1. Stock turnover ratio of K Ltd

  2. Capital output ratio of Indian industries

  3. Debt equity ratio of M Ltd

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

Macro economics studies economics as a whole and not from the view point of an individual. Capital output ratio is the ratio between the capital of all Indian industries to the output yielded by all these industries which is the point of national concern and thus it is included in the study 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

Research in macroeconomics such as the principle of acceleration describing the relationship between income and consumption, has been derived based on ______________.

  1. inductive method

  2. deductive method

  3. both (a) and (b)

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

The inductive method involves the process of reasoning from particular facts to general principle.  

This method consists in deriving conclusions from general truths, taking few general principles and applying them to draw conclusions in general.

Thus, macroeconomics uses inductive method in its study.

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

Identify the correct statement.

  1. In deductive method, logic proceeds from the particular to the general

  2. Micro economics and macro economics are interdependent

  3. In a capitalist economy, the economic problems are solved only by planning commission

  4. Higher the prices, lower is the quantity demanded of a product. This is a normative statement.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation


Microeconomics and macroeconomics are interdependent or complementary to each other. The relationship between microeconomics and macroeconomics in the aggregate production and consumption levels are the result of choices made by individual households and firms.

In deductive method, logic proceeds from the general to particular.

In a capitalist economy, the economic problems are solved by market forces of demand and supply.

Higher the prices, lower is the quantity demanded of a product. This is a positive statement.

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 time period(s) covered in Economics Study is/are ______________.

  1. short-run

  2. long-run

  3. Both (a) and (b)

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

Economists employ the world of in progress associations. Studying finances includes learning to use statistics and to read essentially.  Economics majors are fascinating people both because of their skills and because they can explain why an economic phenomenon occurs and how economic performance strength improves. 

In macroeconomics, the short run is generally defined as the time prospect over which the earnings and price of other input to make are "close," or inflexible, and the long run is defined as the period of time over which these input prices have time to adjust.

Thus, the correct option is C.