GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Micro economics is the study of the allocation of scarce resources
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Economists use models to make testable predictions
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Individuals, governments, and firms use micro economic models and predictions in decision making
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Micro economics is often called income theory to emphasize the important role that prices play
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Detailed explanation-1: -The determination of the cost of a product is not a part of the microeconomic study. Explanation: The study of cost/price is part of macroeconomics rather than microeconomics. Microeconomics is defined as the study of the behavior of individuals and making decisions on resource allocation.
Detailed explanation-2: -No, it is macro economics which is known as the income theory. Macro-economics is also called the income and employment theory because it deals with determination of equilibrium level of income and the corresponding level of employment in the country.
Detailed explanation-3: -Microeconomics deals with the study of individual variables like firms, workers, consumers, and investors. It also studies the economic condition of a section of people and how it can be improved.