Lina Atyani 12A

Question 1- Fill in the blanks.

Small
The term ‘micro’ is derived from the Greek word, ‘Mikros’ which means ----------------.

Large
The term ‘macro’ is derived from the Greek word, ‘Makros’ which means ---------------.

The micro economics is the study ofIndividuals Producers

-------------and ------------.

The macro economics is the study of Whole economy

-----------------.

Question 2- Choose the correct answer

1. The names of classical economists are

O Adam Smith, David Ricardo, J. S. Mill etc

J.M. Keynes

Walrus

2. Micro analysis ruled the world of economics till the -----------

O Great Depression of 1930s

The publishing of the Book "General Theory of Employment, Interest and Money"

18th century

3. According to the Theory of Product Pricing prices of commodities are determined by the

O Market forces of demand and supply

Government intervention

International market

4. The rewards of land and labor are

O Rent and wage

Demand and supply

Output

5. The reward of capital and entrepreneur are

Market forces

O Interest and profit

Input

6. The micro economics is concerned with

O Aggregate demand and aggregate supply

Unemployment

Proper allocation of resources

7. Micro economics deals with the determination of the prices of goods and services as well as

factors of production is known as

Theory of employment

O
Price Theory

Income inequality

8. (Ceteris Paribus) means

O Other things remain constant

Aggregate demand and supply

Macro economic approach

9. Slicing methods splits the economy into

O Small individual units

Big individual units

Analyze the whole economy

10. The term 'marginal' means change brought in total by

Taking about old unit

O An additional unit
Total units

11. Micro economics has limited scope because

It considers the whole economy

O It is not taking about the economics problem, for example, poverty, unemployment, income
inequality, inflation, deflation, economic growth

It concerns with price theory

Theory of economic welfare:

Question 3- Define the following

Welfare economics is
Theory of Factor Pricing

associated with two main

Theory of Product Pricing

theorems. The rst is that

Theory of Economic Welfare

competitive markets yield

Theory of factor pricing:
Deal with the prices paid for
factor services (land, labour,
capital, entrepreneur) and
received by the sellers of
factor services.
Theory of product pricing: Pareto e cient outcomes.
an economic theory that states The second is that social
that the price for a speci c good welfare can be maximized at
or service is determined by the an equilibrium with a
relationship between its supply suitable level of
and demand at any given point. redistribution.