JAIIB · IEIFS · Chapter 12

Fundamentals of Economics Microeconomics Macroeconomics and Types of Economies

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

Focus — Microeconomics / Macroeconomics?

A

Microeconomics: Individual units (household, firm); Macroeconomics: Economy as a whole

Q

Key variables — Microeconomics / Macroeconomics?

A

Microeconomics: Price, output of a firm, consumer choice; Macroeconomics: GDP, inflation, unemployment

Q

Tools — Microeconomics / Macroeconomics?

A

Microeconomics: Demand-supply, MC=MR, elasticity; Macroeconomics: National income accounting, AD-AS

Q

Founded by — Microeconomics / Macroeconomics?

A

Microeconomics: Alfred Marshall (1890); Macroeconomics: J.M. Keynes (1936)

Q

Other names — Microeconomics / Macroeconomics?

A

Microeconomics: Price theory; Macroeconomics: Income theory / Aggregate theory

Q

Method — Microeconomics / Macroeconomics?

A

Microeconomics: Bottom-up; Macroeconomics: Top-down

Q

Perfect Competition — No. of firms / Product / Entry/Exit / Price control / Example?

A

No. of firms: Very large; Product: Homogeneous; Entry/Exit: Free; Price control: Price taker; Example: Agricultural mandi (idealised)

Q

Monopoly — No. of firms / Product / Entry/Exit / Price control / Example?

A

No. of firms: One; Product: Unique (no close substitute); Entry/Exit: Blocked; Price control: Price maker; Example: Indian Railways (passenger long-distance)

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