GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the real domestic output increased by 2.5 % last year
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unemployment was 9.8% of the labour force last year
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the price of wheat determines its demand
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the general price level increased by 4% last year
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Detailed explanation-1: -Option C where it is said that wheat is determined by the product rice is a statement of micro economics.
Detailed explanation-2: -It generally applies to markets of goods and services and deals with individual and economic issues. Description: Microeconomic study deals with what choices people make, what factors influence their choices and how their decisions affect the goods markets by affecting the price, the supply and demand.
Detailed explanation-3: -The theory of price in microeconomics states that the price of a particular good or service is determined by the relationship between producer supply and consumer demand at any given point. Prices should rise if demand exceeds supply and fall if supply exceeds demand.
Detailed explanation-4: -Key Takeaways Microeconomic pricing models show how supply and demand intersect to find an equilibrium price. A microeconomic pricing model could be used to extrapolate demand and quantity at various price points, but it is more often used to show the basic market-clearing price for an individual good.
Detailed explanation-5: -Here are some examples of microeconomics: How a local business decides to allocate their funds. How a city decides to spend a government surplus. The housing market of a particular city/neighborhood.