Identify and Explain the Concept:

1. Gauri collected the information about the income of a particular firm.
Ans: – Micro economics (study of individual units)
Microeconomics is the study of the behaviour of small individual economic units, like individual firms, individual price, individual household etc.

2. Ramesh decided to take all decisions related to production, such as what and how to produce?
Ans:- Concept: Free market Economic
A free market economic where the economic decisions regarding the  function of goods, such as ‘What to produce?, How much to produce?, How to produce? ect.,’ are taken at individual levels. There is no intervention by the Government or any other agency.

3. Shabana paid wages to workers in her factory and interest in her bank loan.
Ans: -Concept: Theory of factor pricing
In macroeconomics land, labour, capital, entrepreneur are the factors that contribute to the production process, micro economics helps in determining the factors rewards for land, labour, capital and entrepreneur in the form of rent, wages, interest, and profit respectively.