9 Questions
ECONOMIC AGENTS INCLUDE:
ALL OF THE ABOVE
CONDITION WHERE WE STUDY THE EQUILIBRIUM IN ONE MARKET ONLY AND LEAVING OTHER MARKETS UNCHANGED
PARTIAL EQUILBRIUM
WHICH OF THESE IS NOT AN EXAMPLE OF A MICRO- MACRO PARADOX?
PRODUCTION
WHO IS THE FATHER OF MACROECONOMICS
J M KEYNES
WHICH OF THESE IS AN EXAMPLE OF MICROECONOMIC STUDY?
CEMENT INDUSTRY
THE BOOK WRITTEN BY J M KEYNES IS
THE GENERAL THEORY OF EMPLOYMENT, INTERST AND MONEY
WHICH OF THESE IS NOT AN SCOPE (USE) OF MACROECONOMICS
PROFIT MAXIMISATION
In the following questions, a statement of assertion (A) is followed by a statement of Reason (R). Mark the correct choice as given below: ASSERTION: Aggregation is involved only in macroeconomics
REASON: Output of a firm is not a macro variable
Assertion(A) is false but reason(R) is true.
In the following questions, a statement of assertion (A) is followed by a statement of Reason (R). Mark the correct choice as given below: ASSERTION: central bank of a country regulates the supply of money in the economy
REASON: total output and employment are taken as constant in macroeconomics
Assertion(A) is true but reason(R) is false.
Study Notes
Economic Agents
- Economic agents include individuals, firms, governments, and central banks.
Microeconomics
- In microeconomics, we study the equilibrium in one market only, leaving other markets unchanged.
- Example of microeconomic study: Analyzing the behavior of a firm or an individual in a market.
Macroeconomics
- Father of macroeconomics: John Maynard Keynes.
- Book written by J.M. Keynes: (No specific book mentioned, but a famous one is "The General Theory of Employment, Interest and Money").
- Scope of macroeconomics: (All options are correct, but one is not mentioned in the text, so it cannot be determined).
Aggregation and Macroeconomics
- Aggregation is involved in macroeconomics.
- Assertion: Aggregation is involved only in macroeconomics.
- Reason: This is because output of a firm is not a macro variable.
Central Bank and Money Supply
- The central bank of a country regulates the supply of money in the economy.
- Assertion: Central bank regulates the supply of money in the economy.
- Reason: This is not because total output and employment are taken as constant in macroeconomics, but rather because the central bank's role is to manage the money supply.
Test your knowledge on economic agents with this quiz! Learn what the term 'economic agents' refers to and determine who can be included as an economic agent. Find out which option is not considered an economic agent. Challenge yourself and expand your understanding of economics!
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