Introduction to Business EconomicsMTP Apr 21Question 656 of 209
All Questions

Which of the following is not a subject matter of Micro economics?

Options

AThe price of mangoes.
BThe cost of producing a fire truck for the fire department of Delhi, India.
CThe quantity of mango produced for the mango market.
DThe national economy's annual rate of growth
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option d — The national economy's annual rate of growth

All Options:

  • AThe price of mangoes.
  • BThe cost of producing a fire truck for the fire department of Delhi, India.
  • CThe quantity of mango produced for the mango market.
  • DThe national economy's annual rate of growth

Detailed Solution & Explanation

• Microeconomics focuses on the behavior of individual economic units, such as households, firms, and individual markets. It examines how these units make decisions and interact. • Option (D) "The national economy's annual rate of growth" refers to a macroeconomic concept. Macroeconomics deals with the economy as a whole, studying aggregate phenomena like national income, inflation, unemployment, and economic growth. • Therefore, the national economy's annual rate of growth is a subject matter of macroeconomics, not microeconomics. • Options (A), (B), and (C) are all examples of microeconomic topics. • (A) "The price of mangoes" relates to the pricing of a specific good in a particular market, a core microeconomic concern (supply and demand). • (B) "The cost of producing a fire truck for the fire department of Delhi, India" involves the production decisions and costs of a specific entity (a firm or government department acting as a producer), which falls under microeconomics (theory of production and cost). • (C) "The quantity of mango produced for the mango market" also pertains to the supply side of a specific market, a microeconomic analysis. • In essence, microeconomics zooms in on individual parts of the economy, while macroeconomics looks at the big picture.

About This Chapter: Introduction to Business Economics

Paper

Paper 4: Business Economics

Weightage

5%

Key Topics

Meaning, Scope, Price Mechanism

This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.

View Official ICAI Syllabus

Exam Strategy Tip

Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.

Related Comparison Tables

Microeconomics vs Macroeconomics: The Complete CA Foundation GuidePositive vs Normative Economics: Fact vs Opinion

More Questions from Introduction to Business Economics

A study of how increases in the corporate income tax rate will affect the nation unemployment rate is an example of

In a ______ the producer is free to set up any type of firms produce goods and services of his choice.

In the beginning the word economics was

In Economics, we use the term scarcity to mean;

In a free market economy, allocation of resources is determined by

If there is no central planning authority to make the fundamental economic decisions and thus to allocate productive resources, how can then free enterprise or capitalist economy solve its central problems?

Ready to Master Introduction to Business Economics?

Practice all 209 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free