Microeconomics focuses on:

• Aggregate national income

• Behavior of individual units like consumers and firms

• General price level

• Balance of payments

Macroeconomics deals with:

• Market demand for ice cream

• Household budget

• Aggregate economic variables like GDP and employment

• Pricing of petrol by one firm

An example of a microeconomic study is:

• Inflation trends in India

• Causes of unemployment

• Determining the price of wheat in a local market

• National income accounting

Which is NOT a macroeconomic concept?

• Aggregate demand

• National output

• Consumer equilibrium

• Employment level

Opportunity cost means:

• Total expenditure incurred

• Value of next best alternative forgone

• Total utility from a good

• Historical cost

Which of the following illustrates opportunity cost?

• Money paid for groceries

• Foregone salary when studying full-time

• Loan repayment

• Taxes paid to government

Who introduced the concept of opportunity cost?

• Alfred Marshall

• Friedrich von Wieser

• Adam Smith

• J. M. Keynes

If a student chooses MBA over taking a job, the opportunity cost is:

• Tuition fees of MBA

• Income foregone from the job

• Books purchased

• Travel cost

Marginalism studies:

• Total changes

• Average cost changes

• Additional benefit or cost of one more unit

• Past consumption

Incrementalism is best described as:

• Sudden radical change

• Decision making through small adjustments

• Ignoring marginal effects

• Large policy shifts