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Imp QuestionsChapter 1 Economics

This document contains sample questions from economics exams on both microeconomics and macroeconomics topics. For question 1, the correlations provided are that microeconomics deals with price theory similarly to how macroeconomics deals with the theory of the general price level. Question 2 asks to identify and explain concepts such as collecting firm data which relates to microeconomics. Question 3 asks to explain the scope of macroeconomics which includes theories of income, employment, prices, growth and development.

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kiran
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243 views

Imp QuestionsChapter 1 Economics

This document contains sample questions from economics exams on both microeconomics and macroeconomics topics. For question 1, the correlations provided are that microeconomics deals with price theory similarly to how macroeconomics deals with the theory of the general price level. Question 2 asks to identify and explain concepts such as collecting firm data which relates to microeconomics. Question 3 asks to explain the scope of macroeconomics which includes theories of income, employment, prices, growth and development.

Uploaded by

kiran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Q.1.

(A) Complete the correlations:


(i) Macro Economics : :Theory of General price level : Micro Economics : Price theory

(B) Give economic terms:


(i) Additional utility derived by a consumer from an additional unit consumed.
Marginal.
(C) Complete the following statements:
(i) Whole Economy is studied in ___(b)____.
(a) Micro Economics (b) Macro Economics
(c) Econometrics (d) Natural Sciences

Q.2. (A) Identify and explain the following concepts (Any THREE): (6)[12]
(i) Asha collected the information about the income of a particular firm.

(B) Distinguish between (Any THREE): (6)


(i) Slicing method and lumping method.

Q.3. Answer the following (Any THREE): [12]


(i) Explain the scope of macro economics.

Q.1. (A) Choose the correct option from given options: (5)[20]
(i) The branch of Economics that deals with the allocation of resources.
(a) Micro Economics
(b) Macro Economics
(c) Econometrics
(d) Monetary Economics
(1) a, b, c (2) a, b (3) only ‘a’ (4) None of the above

(B) Complete the following correlations: (5)


(i) Micro Economics : Tree : : Macro Economics :Forest
(ii) Single consumer : Individual demand : : Many consumers : Aggregate demand

Q.2. (A) Identify and explain the following concepts (Any THREE): (6)[12]
(i) Madhav collected information about monthly expenditure of a family.

Q.4. State with reasons whether you agree or disagree with the following statements
(Any THREE):
(ii) The scope of Macro Economics is unlimited.

(A) Fill in the blanks using appropriate alternatives given in the brackets: (5)[16]
(1) Micro economics is a _______ equilibrium approach.

(partial / general / total / multi-variable)


Q.2. (A) Define ‘or’ explain the following concepts (Any THREE): (6)[12]
(1) Micro economics
(B) Give reasons ‘or’ explain the following statements (Any THREE): (6)
(1) Micro economics is also known as price theory.
Q.3. (A) Distinguish between the following terms (Any THREE): (6)[12]
(1) Individual demand and Market demand.

(B) Write short notes (Any TWO): (6)


(1) Importance of micro economics.
Answer:
Introduction : Micro economics is the Js branch of economics that studies the behaviour of
individuals.
It includes individual prices, wages, income, individual industries, particular commodities,
particular household, etc.
(1) Definition :
(a) According to Maurice Dobb – “Micro economics is in fact a microscopic study of l the
economy.
(b) According to Prof. A. P. Lerner – “Micro economics consists of looking at the economy ?
through a microscope as it were to see how the millions of cell in the body of economy – the
individuals or households as consumers and individuals or firms as producers play their part
in the working of the whole economics organism.
(2) Meaning:
Micro economics deals with small individual economics units such as an individual
( consumer, individual producer, the price of a particular commodity or factor etc.
(3) Importance :
(a) Price Determination : Micro economics j explains how the prices of different products <
and various factprs of production are determined.
(b) Free Market Economy : A free market economy is that economy where the economic
decisions are taken at individual levels without intervention by the government. Decisions
are regarding production of goods such as What to produce? How much to produce? How to
produce? etc.
(c) Foreign Trade : Micro economics also explains gains from foreign trade, effects of tarrifs,
factors affecting exchange rate, etc.
(d) Economic Model Building : Micro
economics helps in understanding various complex economic situations with the help of
economic models.
(e) Business Decision : Micro economics theories are helpful to businessman for taking
important business decision related to determination of cost of production and prices of
goods, maximization of output & profit, etc.
(f) Useful to Government : It is useful in formulating and evaluating economic policies
including pricing and distribution policies that promote economic welfare. It is useful in
determining tax policy, public, expenditure policy, etc.
(g) Basis of Welfare Economics : It explains how optimum use of resources can be made to
increase the welfare of the society. It also studies how taxes affect social welfare.

Q.4. Answer the following questions (Any THREE):


(3) Explain the scope and subject matter of macro economics.
Answer
.Scope of Macro Economics:
The given chart helps us to understand the scope of macro economics.

1. Theory of Income and Employment : It explains which factors determine the level of
National Income and employment and what j causes fluctuations in the level of income,
output and employment.
To understand how the level of employment is determined, we have to study the
consumption function. It includes theory of business cycles.
2. Theory of General Price Level and Inflation: Macro economics analyses shows how the
general price level is determined and the causes for fluctuations in it. This study is important
for understanding the  problems created by inflation and deflation.
3. Theory of Economic Growth and Development : Macro economics studies the causes of
under development and poverty in poor countries and suggests strategies for accelerating
growth and development in the country.
4.  Macro theory of Distribution : Macro theory of distribution deals with the relative share
of rent, wages, interest and profit in j the total national income of various classes.

Q.6. Write explanatory answers (Any TWO):


(3) What is ‘national income’? Explain the theoretical difficulties involved in estimation of
national income.

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