Advertisements
Advertisements
Question
Answer the following question
What is the scope & subject matter of Micro Economics?
Solution
Microeconomics deals with the study of the following theories:
i. Theory of product pricing - The theory of product pricing explains how the prices of goods are determined in the market. For this, it is important to study demand and supply in the market. The demand is studied by studying the consumer behaviour and the supply is studied by studying the cost and production behaviour of the firm.
ii. Theory of factor pricing - The theory explains how the prices of various factors of production, namely, land, labour, capital and entrepreneur are determined in the factor market, in the form of rent, wages, interest and profits, respectively.
iii. Theory of economic welfare - This theory of microeconomics deals with the allocation of resources. It explains that resources should be used in a manner that gives maximum satisfaction to people. It involves making decisions such as what to produce, how much to produce, when to produce, for whom to produce and by what technique to produce.
APPEARS IN
RELATED QUESTIONS
The terms Micro and Macro Economics were first used by _____________.
|
Group "A" |
Group "B" |
||
|
(a) |
Demand for electricity |
(1) |
Rent |
|
(b) |
Perfectly elastic supply |
(2) |
Transfer income |
|
(c) |
Land |
(3) |
Dear money policy |
|
(d) |
Pension |
(4) |
Composite demand |
|
(e) |
Inflation |
(5) |
Horizontal supply curve |
|
|
|
(6) |
Part of national income |
|
|
|
(7) |
Vertical supply curve |
|
|
|
(8) |
Cheap money policy |
Meaning and Definition of Micro Economics?
Micro Economics studies behaviours of individual economic unit.
Explain the subject matter of Micro Economics.
Give reason or explain the following statement.
Micro economics studies individual economic unit.
Microscopic study
Micro economics is a _____________ equilibrium approach. (partial/general/total/multi-variable)
Match the following :
| Group 'A' | Group 'B' | ||
| 1 | Tea and coffee | a | Wages |
| 2 | Stock | b | Flow concept |
| 3 | Labour | c | Central bank |
| 4 | National income | d | Commercial bank |
| 5 | Clearinghouse system | e | Complementary goods |
| f | Rent | ||
| g | Potential supply | ||
| h | Substitute Goods |
Match the following Group ‘A’ with Group ‘B’
| Group A | Group B |
| Inferior Goods | Average Cost (AC) |
| Reward of capital | 1st April to 31st March |
| Financial year | Quantitative measure of credit control |
| Bank rate | Marginal cost |
| Total Cost (TC) / Total Quantity (TQ) | 1st January to 31st December |
| Profit | |
| Interest | |
| Giffen goods |
Define or Explain the following concepts
Microeconomics
Give reason or explain the following.
Microeconomics deals with allocation of resources.
Define or Explain the Individual economic unit.
State whether the following statements are True or False:
Adam Smith is known as the 'Father of Economics.'
State whether the following statement is True or False with reason:
Macro economics studies single unit.
Match the following Group ‘A’ with Group ‘B’
|
Group ‘A’ |
Group ‘B’ |
||
|
(1) |
Perfect competition |
(a) |
Captain of industry |
|
(2) |
Micro economics |
(b) |
Price Discrimination |
|
(3) |
Entrepreneur |
(c) |
Homogeneous product |
|
(4) |
Money |
(d) |
Smallest unit |
|
(5) |
Central Bank |
(e) |
Largest unit |
|
|
|
(f) |
Lender of last resort |
|
|
|
(g) |
Medium of exchange |
Fill in the blank with appropriate alternative given below.
The terms Micro and Macro Economics were first used by _______________.
Fill in the blank with appropriate alternative given below
Micro Economics is a study of _________.
Micro Economics is also called as ______.
Micro Economic analysis adopts ______ method.
Fill in the blank with appropriate alternative given below.
Micro Economics is a __________________________ equilibrium approach.
Match the following
| Group A | Group B |
| 1) Adam Smith | A) Aggregates |
| 2) Micro Economics | B) Prof. Boulding |
| 3) Macro Economics | C) Father of Economics |
| 4) Dr. Marshall | D) Individual units |
| E) Economic efficiency | |
| F) Principles of Economics |
State whether the following statement is TRUE or FALSE.
Dr. Marshall is known as the Father of Economics.
Define or Explain the following concept.
Micro Economics
Define or Explain the following concept.
Partial equilibrium
Write short note on :
Subject matter of Micro Economics
Do you agree with the following statement? Give reason.
Micro Economics studies behaviour of individual unit.
Explain the features of microeconomics.
Answer in detail
Explain the scope and subject matter of Micro Economics.
Do you agree with the following statement? Give reason.
Macroeconomics is a partial equilibrium analysis.
Fill in the blank using appropriate alternatives given Below
_________ is regarded as the father of 'Economics'.
Match the following words from group 'A' and 'B'.
|
Group 'A'
|
Group 'B'
|
|
(a) Prestigious goods
|
(1) Average cost
|
|
(b) Total Revenue / Total Quantity
|
(2) Transfer payment
|
|
(c) Labour
|
(3) Qualitative credit control.
|
|
(d) Unemployment allowance
|
(4) Rent
|
|
(e) Direct action
|
(5) Quantitative credit control.
|
|
(6) Exception to the law of demand.
|
|
|
(7) Wages
|
|
|
(8) Average revenue.
|
Match the following words from group 'A' and 'B'
|
Group 'A'
|
Group 'B'
|
|
(a) Production
|
(1) Average Expenditure
|
|
(b) Tea and coffee
|
(2) Personal Income - Direct taxes.
|
|
(3) Stock
|
(3) Substitute goods.
|
|
(4) Disposable income
|
(4) Central bank
|
|
(5) Credit control
|
(5) Complementary goods.
|
|
(6) Potential supply
|
|
|
(7) Commercial bank
|
|
|
(8) Creation of utility.
|
The method adopted in microeconomic analysis.
- Lumping method
- Aggregative method
- Slicing method
- Inclusive method
State with reason whether you agree or disagree with the following statement:
The scope of microeconomics is unlimited.
State with reason whether you agree or disagree with the following statement:
Micro economics uses slicing method.
Identify and explain the following concept.
Asha collected information about the income of a particular firm.
- Assertion (A): Microeconomics is known as Price theory.
- Reasoning (R): Macro economics is known as Income theory.
Method adopted in micro economic analysis.
- Lumping method
- Aggregative method
- Slicing method
- Inclusive method
Complete the correlation:
General equilibrium : Macro economics :: ______ : Micro economics
- Assertion (A): Microeconomics is also known as Price Theory.
- Reasoning (R): Microeconomics is a study of economy-wide aggregates.
Explain why microeconomics is known as Price Theory.
Write in brief about partial equilibrium analysis.
The branch of economics that deals with the allocation of resources.
- Micro economics
- Macro economics
- Econometrics
- None of these
