Mr Parmeshwar B Gore, Ph.D.

Introduction to  Macroeconomics Difference between micro and macro Economics          Micro Economics deals with the behaviour of an individuals. i.e. an individual person,       a firm, a industry, or a individual entity.       Macro Economics deals with the behaviour of aggregates. i.e. national income,         employment level, general price level, investment level and balance of payment.       Aggregate activities implies the activities in different sectors of the econom Meaning & Definitions }   In the term Macroeconomics, Macro means large,  a big picture scenario of the economy }   Macroeconomics is a branch of economics that studies how an overall economy behaves. i.e. the market system that operate on a large scale. }   Macroeconomics deals with the performance, structure, and behavior of the entire economy.  }   Macro economics is that part of economics which studies the overall averages and aggregates of the economic system. It does n

FYBCOM Q.1 A) Fill in blanks/ Choose the correct answer                      10 marks Module No. I & II 1)     Opportunity cost is also called as ------ cost a) Total          b) Average            c) Marginal        d) Alternative 2)     Incremental principal state that, a investment decision is profitable if a) revenue increase more than cost            b) cost reduce more than revenue                                     C ) Both (a) and (b)                                     d)none of these 3)     Marginal is denoted by a small unit change and it is expressed by the symbol …… a) Δ           b) Ω           c) ∑      d) ∞ 4)     The ratio of change in total revenue to a unit change in output sold is ------ a) Marginal revenue              b) Marginal cost                c) Average revenue  d) Average Cost 5)     ----- shows the relationship between dependant and independent variables a) Functional relation