Given limited resources of labour, raw materials and time, economic agents have to decide what to produce. Most primitive economies concentrate on producing food and shelter — the basic necessities of life.
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Seeing as this is one of Questions on macroeconomics broadest topics in economics, there are a great many questions that deal with it. These can be questions that ask the difference between different indicators, questions that ask what the monetary policy would be in a given situation, or questions that deal with macroeconomic history.
Here are a few sample questions: Macroeconomic deals with the functioning of the economy as the whole. What is the limitations of macroeconomics? Limitations of macro-economics The significances of the study of micro-economics remarkably increased after it was developed and popularised by J.
But macro-economi…cs has following limitations. Danger of excessive thinking in terms of aggregates: There is danger of executive thinking in terms of aggregates which are not homogeneous.
Aggregate tendency may not affect all sectors equally: For example,the general increase in price affects different sections of the community or the different sectors of the economy differently.
The increase in general level of price benefits the producers,but hurts the consumers. Indicates no change has occured: The study of aggregates make us believe that no change has occured even if there is a change.
It indicates that there is no need of new policy. For example,a 5 percent fall in agricultural price an d5 percent rise in industrial prices does not affect the price level. Difficulty in the measurement of aggregates: There are at times,difficulty in the measurement of aggregates.
It is difficult to measure the big aggregates. This problem has now been more or less erased by the use of calculators and the things which are nothomogeneous. The fallacy of composition: The aggregate economic behavior is the sum of individual behavior.
This is called fallacies of composition. What is true in case of an individual may not be true in the case of economy as whole. For example,individual saving is a virtue,wheres the public saving is vice.
Boulding "These difficulties are aggregative paradoxes which is true when used to one person,but false when used to the economy as a whole.Download the largest collection of free MCQs on Economics for Competitive Exams. Comprehensive and up-to-date question bank of mutiple choice objective practice questions and answers on Economics for Competitive Exams.
Economics is the study of production, distribution and consumption of goods and services whether in a city, country or a single business. Questions about supply and demand and economic theory are.
Given limited resources of labour, raw materials and time, economic agents have to decide what to produce. Most primitive economies concentrate on producing food and shelter – the basic necessities of life. However, with increased productivity, the economy has more available resources which can be.
Macroeconomics is the branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. Do you need some practice for an upcoming assignment or .
d) A casual worker who has no labour contract This unexpectedly low inflation will help the worker, as it meant that they are cheaper to hire. Thus, the company will continue to hire them, regardless of a labour contract, keeping them employed. Macroeconomics in Context This chapter introduces you to the basic topics of macroeconomics, and presents the main macroeconomic goals: 1) living standards growth, 2) stability and security, and 3) Define the difference between normative and positive questions.
3. Discuss the relationship between economics and well-being.