Tag: microeconomics and macroeconomics : introduction

Questions Related to microeconomics and macroeconomics : introduction

In micro economics, we 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. aggregates

  2. national income

  3. demand & supply

  4. all of the above

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Correct Option: C
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. 

Which of the following is covered in 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. Consumer Behaviour

  2. External Value of Money

  3. Employment and Economic Growth

  4. National Income

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Correct Option: A
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. 

Which of the following does not fall under Macro 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. 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

Show answer
Correct Option: C
Explanation:

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

___________ deals with the problem of allocation of resources.

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

  1. Statistic

  2. Macro-Economic Theory

  3. Econometrics

  4. Micro-Economic Theory

Show answer
Correct Option: D
Explanation:

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

Which of the following is covered in Macro 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. Factor Pricing

  2. National Income and Output

  3. Location of Industry

  4. Study of Firms

Show answer
Correct Option: B
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.

Which of the following statements is correct?

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

  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

Show answer
Correct Option: C
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.

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

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

  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

Show answer
Correct Option: B
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.

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

  2. deductive method

  3. both (a) and (b)

  4. neither (a) nor (b)

Show answer
Correct Option: A
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.

Identify the correct statement.

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

  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.

Show answer
Correct Option: B
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.

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

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

  1. short-run

  2. long-run

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C
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.