Mastering Economic Agents

Questions and Answers

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 Signup and view all the answers

WHICH OF THESE IS AN EXAMPLE OF MICROECONOMIC STUDY?

CEMENT INDUSTRY Signup and view all the answers

THE BOOK WRITTEN BY J M KEYNES IS

THE GENERAL THEORY OF EMPLOYMENT, INTERST AND MONEY Signup and view all the answers

WHICH OF THESE IS NOT AN SCOPE (USE) OF MACROECONOMICS

PROFIT MAXIMISATION Signup and view all the answers

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. Signup and view all the answers

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. Signup and view all the answers

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.