Chapter 7 – Introduction to Macro Economics
Select the correct option
- The terms Micro Economics and Macro Economics were coined by
- Adam Smith .
- PA Samuelson.
- Alfred Marshall.
- Ragner Frisch .
- Who is known as father of modern Macro Economics ?
- Adam Smith .
- Alfred Marshal.
- J.M Keynes.
- J.B Say .
- Household, Firm, Government and
- Export .
- External sector.
- Import sector.
- Macro sector .
- ‘The General Theory of Employment, Interest and Money’ is the book written by
- Alfred Marshal .
- Ragner Frisch.
- Adam Smith.
- JM Keynes .
- The ‘Great Depression’ started in the year
- 1730 .
- 1830.
- 1929.
- 1829 .
- ‘The General Theory of Employment, Interest and Money’ was published in the year
- 1736 .
- 1836.
- 1629.
- 1936 .
- Macro Economics is also known by the name
- Price Theory.
- Cost Theory.
- Theory of income and employment.
- Demand Theory .
- The expenses which raise productive capacity is known as
- Consumption expenditure.
- Investment expenditure.
- Export expenditure.
- Public expenditure .
- Income of a family, Production of rice, Gross domestic saving, profit of a firm
- Price of rice, saving of an individual household, profit of a firm, whole sale price level
- Aggregate units, worm’s eye view, bird’s eye view, general equilibrium analysis.
- Classify the following economic variables under suitable heads.
International trade, price theory, economic growth, partial equilibrium, aggregate demand, allocation of reasources.
Answer:
Micro Economics. Macro Economics. Price theory International trade Partial equilibrium Economic growth Allocation of resources Aggregate demand - What would come in the place of question mark ?
- Wealth of Nations : 1776
- The General Theory : ?
- ? : Economy as a whole
- Micro economics : Individual units
- Dream land is an imaginary country. It does not import or export. It does not allow foreign investment. It does not borrow from abroad. What do you call this type of economy ? Is it good to have such an economic system ? Comment your opinion.
- List out the important features of Great Depression of 1930’s.
- Some variables are given below. Classify them under two branches of economics.
- Point out the significance of the study of Macro Economics.
- Helpful to understand thefuncctioning of the economy.
- Helpful in comparison of various economies.
- Useful in planning and forecasting.
- Helpful in studying growth and development.
- Helpful in studying the fluctuations of the economy.
- Helpful in formulating various policies and programmes.
- How you identify an open economy ?
- According to the Macro Economic point of view there are four major sectors in an economy. Name these sectors.
- Households.
- Firms.
- Government.
- External Sector.
Answer:
D. Ragner Frisch
Answer:
C. J.M Keynes
Answer:
B. External sector
Answer:
D. JM Keynes
Answer:
C. 1929
Answer:
D. 1936
Answer:
C. Theory of income and employment
Answer:
B. Investment expenditure
Find the odd one out
Answer :
Gross domestic saving, others are micro economic indicators.
Answer :
Whole sale price level, others are micro economic indicators.
Answer :
Worm’s eye view, others are features of macro economics.
-
A.
B.
Answer :
A. (b) 1936
B. (a) Macro Economics
Answer :
This type of economy is called ‘closed’ economy. A closed economy can not grow fast like an open economy do and will be an undeveloped economy. It will not get all the benifits of international trade. A closed economy is undesirable.
Answer :
Unemployment, fall in aggregate demand, credit crisis, economic contraction were the immportant features of Great Depression.
Utility, GDP, Average cost, Inflaation, Partial analysis, Demand for a pen, Aggregate consumption, Taxes.
Answer :
| Micro Economics | Macro Economics |
|---|---|
| Utility | GDP |
| Demand for a pen | Inflation |
| Partial analysis | Aggregate consumption |
| Average cost | Taxes |
Answer :
Answer :
An open economy will have economic relations with other countries of the world . There will be specisalisation and international trade.
Answer :
