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Questions and Answers
Where did Ragnar Frisch, the Norwegian economist, coin the terms 'micro' and 'macro' economics?
Where did Ragnar Frisch, the Norwegian economist, coin the terms 'micro' and 'macro' economics?
What was Ragnar Frisch's pioneering contribution to economics?
What was Ragnar Frisch's pioneering contribution to economics?
Who popularized microeconomic analysis in their book 'Principles of Economics'?
Who popularized microeconomic analysis in their book 'Principles of Economics'?
In what year was Ragnar Frisch awarded the Nobel Prize for Economics?
In what year was Ragnar Frisch awarded the Nobel Prize for Economics?
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What was the term coined by Ragnar Frisch to describe the study of individual firms and producers?
What was the term coined by Ragnar Frisch to describe the study of individual firms and producers?
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Which economic school of thought analyzed the concept of national income and wealth in the 18th century?
Which economic school of thought analyzed the concept of national income and wealth in the 18th century?
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Who is credited with the development of the macroeconomic approach?
Who is credited with the development of the macroeconomic approach?
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What event marked the shift in focus from microeconomic analysis to macroeconomic analysis?
What event marked the shift in focus from microeconomic analysis to macroeconomic analysis?
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Who among the following economists did not contribute to the development of macroeconomics?
Who among the following economists did not contribute to the development of macroeconomics?
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What was the title of John Maynard Keynes' famous book that used macroeconomic analysis to understand economic problems?
What was the title of John Maynard Keynes' famous book that used macroeconomic analysis to understand economic problems?
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Study Notes
Microeconomics and Macroeconomics
- The two main branches of modern economics are Microeconomics and Macroeconomics.
- The term 'micro' is derived from the Greek word 'Mikros', meaning small or a millionth part.
- The term 'macro' is derived from the Greek word 'Makros', meaning large.
Ragnar Frisch
- Ragnar Frisch, a Norwegian economist, coined the terms 'Micro' and 'Macro' in 1933.
- He was a joint winner of the first Nobel Prize for Economics in 1969 with Jan Tinbergen.
- Frisch was a pioneer of econometrics, applying mathematical models and statistical techniques to economic data and theories.
- He coined many economic terms, including 'Microeconomics' and 'Macroeconomics'.
Historical Review of Microeconomics
- Microeconomic analysis was developed first, with a traditional approach.
- The origin of Microeconomics can be traced back to the era of Classical Economists, including Adam Smith, David Ricardo, and J.S. Mill.
- The approach was popularized by Neo-Classical Economist, Alfred Marshall, in his book 'Principles of Economics' (1890).
- Other notable contributors to Microeconomics include Prof. Pigou, J.R. Hicks, Prof. Samuelson, and Mrs. Joan Robinson.
Historical Review of Macroeconomics
- Macroeconomics existed in the past, but it was not as prominent as Microeconomics until the 1930s.
- In the 16th and 17th centuries, Mercantilists advocated policies to the government based on a macro approach.
- In the 18th century, Physiocrats (French Thinkers) analyzed the concept of national income and wealth.
- Classical Economic theories of Adam Smith, Ricardo, and J.S. Mill discussed national income and wealth, but it was combined with micro analysis.
- After the Great Depression, Lord John Maynard Keynes published his book "General Theory of Employment, Interest and Money" (1936), using a macroeconomic approach.
- Keynes is credited with the development of macroeconomic approach, along with other notable contributors like Malthus, Wicksell, Walras, and Irving Fisher.
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Description
Learn about the two main branches of modern economics, Microeconomics and Macroeconomics, and their origins.
