Question : The concept of demand and supply is a key topic in:
Option 1: Macroeconomics
Option 2: Microeconomics
Option 3: Both microeconomics and macroeconomics
Option 4: Neither microeconomics nor macroeconomics
Correct Answer: Microeconomics
Solution : The concept of demand and supply is a key topic in (b) Microeconomics.
Microeconomics focuses on the behavior of individual economic units, such as consumers and firms, and their interactions within specific markets. The study of demand and supply is fundamental to microeconomics. It examines how consumers' preferences and willingness to pay determine the demand for goods and services, and how firms' production decisions and cost structures influence the supply of goods and services. Microeconomics analyzes the interplay between demand and supply to determine market equilibrium, prices, and quantities exchanged in individual markets.
Question : The aggregate demand and aggregate supply model is used in:
Option 1: Microeconomics
Option 2: Macroeconomics
Option 3: Econometrics
Option 4: Industrial organization
Question : The study of how individuals make decisions under conditions of scarcity is a key concept in:
Option 3: Financial economics
Option 4: Econometrics
Question : What are the main tools of microeconomics?
Option 1: Demand and supply
Option 2: Demand and cost
Option 3: Supply and producer's equilibrium
Option 4: All of the above
Question : The main tools of macroeconomics are ___________ and _________.
Option 1: Aggregate demand and aggregate supply
Option 2: Determination of income and employment
Option 3: Both 1 and 2
Option 4: None of the above
Question : The equilibrium price of a commodity will rise if there is a/an:
Option 1: increase in supply combined with a decrease in demand.
Option 2: increases in both demand and supply.
Option 3: decrease in both demand and supply.
Option 4: increase in demand accompanied by a decrease in supply.
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