Tag: introduction to micro economics

Questions Related to introduction to micro economics

The objective of macro-economics is to study about _______.

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  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

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Correct Option: D
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.

The study of microeconomics includes the study of ___________.

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  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

Show answer
Correct Option: B
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.

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

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. Propensity to consume

  2. Propensity to save

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: B

Which of the following suggests a micro approach for India?

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  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.

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Correct Option: C
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.

Micro economics is related to ______________.

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. demand

  2. supply

  3. price mechanism

  4. all of the above

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Correct Option: D
Explanation:

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

___________ is also known as price theory.

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. Micro economics

  2. Macro economics

  3. Both A & B

  4. None of the above

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Correct Option: A
Explanation:

Micro economics is the study of individual behaviour and is also known as price theory.

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

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. microeconomics

  2. macroeconomics


  3. nanoeconomics

  4. neoeconomics

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Correct Option: A
Explanation:

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

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.

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. 1,2 and 3

  2. 2,3 and 4

  3. 1,3 and 4

  4. 1,2,3 and 4

Show answer
Correct Option: D
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. 

Micro Economics is also known as ____________.

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. Income theory

  2. Price theory

  3. Expenditure theory

  4. Savings theory

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Correct Option: B
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.

Which theory is generally included under micro-economics?

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. Price Theory

  2. Income Theory

  3. Employment Theory

  4. None of the above

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Correct Option: A
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.