Class 12 Micro Economics - Chapter Introduction to Micro Economics NCERT Solutions | Discuss the subject matter of economics.
Discuss the subject matter of economics.
The subject matter of economics is sub-divided into two core branches, Micro Economics and Macro Economics. This division came into existence only after 1930 as per the suggestion by Ragnar Frisch. The domains of interest of these two branches of economics can be presented as Microeconomics is the study of individual economic units, i.e. the behaviour of consumers and firms. The study of how they utilise the given resources in the best possible manner in order to maximise their rationale objectives falls under the domain of microeconomics. It is also the study of demand and supply and how their interaction determines prices of various goods and services. Microeconomics helps in solving the three central problems of an economy. It is also called the Price theory as it primarily focuses on how prices are determined both in commodity and factor markets. In Macroeconomics we study how the economy as a whole operates. It focuses on the determination of the aggregate measures, like aggregate demand, aggregate supply and overall price level and how they change over time. It is also known as the Theory of Income and Employment as its main focus is on how income and employment levels are determined. Macroeconomics helps in understanding and solving problems like inflation, unemployment, Balance of Payments (BOP) disequilibrium, poverty, etc.
More Questions From Class 12 Micro Economics - Chapter Introduction to Micro Economics
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Distinguish between a centrally planned economy and a market economy.
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Distinguish between microeconomics and macroeconomics.
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What do you mean by the production possibilities of an economy?
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What is a production possibility frontier?
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Discuss the central problems of an economy.
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What do you understand by normative economic analysis?
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What do you understand by positive economic analysis?
Popular Questions of Class 12 Micro Economics
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Explain the concept of a production function
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What would be the shape of the demand curve so that the total revenue curve is?
(a) A positively sloped straight line passing through the origin?
(b) A horizontal line?
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Explain market equilibrium.
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What are the characteristics of a perfectly competitive market?
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What do you mean by the budget set of a consumer?
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What is the total product of input?
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From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:
Quantity
1
2
3
4
5
6
7
8
9
Marginal
Revenue
10
6
2
2
2
0
0
0
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When do we say that there is an excess demand for a commodity in the market?
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How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?
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What is budget line?
Recently Viewed Questions of Class 12 Micro Economics
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If the price of a substitute Y of good X increases, what impact does it have on the equilibrium price and quantity of good X?
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The market price of a good changes from Rs 5 to Rs 20. As a result, the quantity supplied by a firm increases by 15 units. The price elasticity of the firm’s supply curve is 0.5. Find the initial and final output levels of the firm.
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The following table shows the total cost schedule of a firm. What is the total fixed cost schedule of this firm? Calculate the TVC, AFC, AVC, SAC and SMC schedules of the firm.
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How is the wage rate determined in a perfectly competitive labor market?
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How will a change in the price of coffee affect the equilibrium price of tea? Explain the effect on equilibrium quantity also through a diagram.
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Using supply and demand curves show how an increase in the price of shoes affects the price of a pair of socks and the number of pairs of socks bought and sold.
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How does an increase in the number of firms in a market affect the market supply curve?
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Suppose a consumer wants to consume two goods which are available only in
integer units. The two goods are equally priced at Rs 10 and the consumer’s
income is Rs 40.
(i) Write down all the bundles that are available to the consumer.
(ii) Among the bundles that are available to the consumer, identify those which cost her exactly Rs 40. - Q:-
Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?
- Q:-
Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin?
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