Tag: microeconomics and macroeconomics : introduction

Questions Related to microeconomics and macroeconomics : introduction

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

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

  1. Defence expenditure

  2. Subsidy

  3. Interest payment

  4. Salaries of employees

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Correct Option: C
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.

Who developed the innovation theory of profit?

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

  1. Schumpeter

  2. Haley

  3. Prof. Knight

  4. Karl Marx

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Correct Option: A
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.

The terms "Microeconomics" was coined by ___________.

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

  1. Alfred Marshall

  2. Ragnar Nurkse

  3. Ragnar Frisch

  4. J M Keynes

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Correct Option: C
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

All are subject matter of macro-economics except _________.

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

  1. hardening of interest rates

  2. strengthening of rupee against dollar

  3. stagnation of economic growth

  4. increase in maximum selling price of fertilizers

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Correct Option: D
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.

__________ is/are not the concerns of microeconomics.

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

  1. Rates of inflation

  2. Population growth

  3. Rates of unemployment

  4. All of the above

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Correct Option: D
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. 

The focus of macroeconomics policy is on _________.

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 determination in specific markets

  2. structure and conduct of market operations

  3. addressing the problem of unemployment and inflation

  4. equity and efficiency

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Correct Option: D
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.

The term microeconomics was coined by __________.

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

  1. Prof. A Samulson

  2. Giffen

  3. Prof. Ragner Frisch

  4. Eagle

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Correct Option: C
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.

At the point of inflexion the marginal product is ____________.

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

  1. Maximum

  2. Minimum

  3. Modest

  4. Optimum

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Correct Option: C

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

  2. descriptive economics

  3. micro economics

  4. normative economics

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Correct Option: A
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.

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

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

  1. Per capital income of India

  2. Under employment in agricultural sector

  3. Lock out in TELCO

  4. Total savings in India

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Correct Option: C
Explanation:

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