Exploring Economic Concepts

What is the primary focus of microeconomics?

व्यापक अर्थशास्त्र का प्राथमिक उदेश्य है

• The overall economy and its growth.

• International trade and exchange rates.

• Government policies and regulations.

• The behavior of individual consumers and firms.

How does macroeconomics differ from microeconomics?

• Macroeconomics studies the economy as a whole, while microeconomics focuses on individual markets and agents.

• Macroeconomics focuses solely on government policies.

• Microeconomics analyzes the entire economy's performance.

• Macroeconomics only deals with inflation rates.

Define the law of demand.

• The law of demand suggests that quantity demanded remains constant regardless of price changes.

• The law of demand indicates that there is an inverse relationship between price and quantity demanded.

• The law of demand states that higher prices lead to higher quantity demanded.

• The law of demand indicates a direct relationship between price and quantity demanded.

What factors can cause a shift in the demand curve?

• Government regulations on production

• Technological advancements in manufacturing

• Changes in weather patterns

• Factors causing a shift in the demand curve include changes in income, preferences, prices of related goods, future price expectations, and number of buyers.

Explain the concept of supply in economics.

• Supply is the total amount of a good or service that producers are willing and able to sell at various prices.

• Supply is the amount of a good or service that consumers are willing to buy at various prices.

• Supply refers to the total demand for a good or service in the market.

• Supply is the fixed quantity of a good or service that cannot change regardless of price.

What is the relationship between price and quantity supplied?

• There is no relationship between price and quantity supplied.

• There is a direct relationship; higher prices lead to higher quantity supplied.

• Lower prices always increase quantity supplied.

• Higher prices lead to lower quantity supplied.

Describe the characteristics of perfect competition.

• Products are highly differentiated

• Significant barriers to entry and exit

• Characteristics of perfect competition include many buyers and sellers, identical products, free market entry and exit, perfect information, and price-taking behavior.

• Few buyers and sellers

What are the main features of a monopoly?

• Multiple sellers

• Main features of a monopoly include single seller, price maker, high barriers to entry, and lack of competition.

• Price taker

• Low barriers to entry

How do oligopolies affect market prices?

• Oligopolies have no effect on market prices.

• Oligopolies lead to lower prices due to increased competition.

• Oligopolies always result in price wars among firms.

• Oligopolies typically lead to higher market prices due to reduced competition and potential collusion among firms.

What is fiscal policy and its main objectives?

• Fiscal policy is solely focused on international trade regulations.

• The main goal of fiscal policy is to increase taxes for all citizens.

• Fiscal policy is the use of government spending and taxation to influence the economy, with main objectives of stimulating growth, controlling inflation, and reducing unemployment.

• Fiscal policy only involves monetary supply adjustments.