Introduction to Microeconomics
Economics-
The term economics refers to that branch of social science that is concerned with the production, distribution and consumption of goods and services. In other words, economics analyses how human beings allocate the scarce resources in an efforts to maximize utility.
Economy:-
The term economy refers to the the economic system of an area, region or country within which the requisite process of production, distribution and consumption takes place.
Economic System:-
The term economic system protends the manner by which different economic elements, for example, individual workers, private enterprises and government mechanisms are interlinked to solve the central problem of an economy i.e. what, how and for whom to produce.
Planned economy refers to that economy in which all economic activities are undertaken by the central authority with the view of maximising social welfare.
Market economy refers to a situation where all economic activities are organised through the market. Here all economic activities are undertaken by the private sector. In a market economy, there is no governmental intervention in economic activities. Thus, this economy is also known as " Capitalist or Free Economy".
Q.Define Microeconomics.
Ans:- The appellation "microeconomics" refers to that branch of economics which analyses the economic actions of particular individuals or particular business units. In other words, microeconomics studies the economic activities like consumer behavior, price, demand, supply, income, etc from an individual point of perspective.
Examples:- the study of a firm, an industry, particular households, individual prices, wages, income etc.
Q. What is Macroeconomics?
Ands:- Macroeconomics refers to the study of the aggregates and averages of the whole economy such as aggregate output, national income, total consumption, total employment, total saving and total investment.
Q. Define economic problem.
Ans:- The term economic problem protends to the problem that is concerned with the production of goods and service to satisfy unlimited human wants with limited resources. Economic problem arise mainly on account of the fact that human wants are unlimited whereas the resources to satisfy human wants are limited.
Examples:- Scarcity of goods and raw materials, unemployment problem etc .
Q. What are the three main cause of economic problem?
Ans:- The three main cause of economic are Scarcity of resources, unlimited human wants and alternative uses of resources.
Q. The study of individual units is a part of which branch of economics?
Ans:- Microeconomics.
Q. The study of aggregates comes under which branch of economics?
Ans:- Macroeconomics.
Q. Give three examples of economic activity.
Ans:- Production, consumption and exchange.
Q. What is problem of choice?
Ans:- In general parlance, the term "problem of choice" involves the allocation of scarce resources to alternative uses. The problem of choice arises mainly because of the fact that human wants are unlimited whereas the resources to satisfy them are limited.
Q. What is meant by the problem of allocation of resources?
Ans:- The problem of allocation of resources refers to the optimal allocation of limited or scarce resources to productive activities with a view to minimize the cost incurred by such allocation.
Q. Define marginal rate of transformation.
Ans:- The term "marginal rate of transformation" protends to the ratio of number of units of a commodity (say Y) forgone to gain an additional unit of another commodity (say X), while keeping constant the use of production factors and the technology being used.
Q.. What is meant by production possibility curve?
Ans:- The production possibility curve is the locus of output combination which can be obtained from given quantities of factors or inputs.
In the figure given above units of consumer goods( good Y) are measured horizontally and that of the capital goods (good X) on the vertical axis. Point A and point B depicts the various combinations of the two goods. The concave curve as depicted by the green curve is known as the production possibility curve which is also known as the transformation curve or production possibility frontier.
Q. What is resource in economics?
Ans:- The term resource in economics refers to those goods and services which are needed to produce other goods and services. For example, land, labour, capital etc.
Q. What do you mean by allocation of resources?
Ans:- Allocation of resources means how much of which resource is used in the production of each goods and services.
Q. Define scarcity in economics?
Ans:- The term scarcity refers to the non-availability of resources in comparision to demand which gives rise to the problem of choice.
More Articles:-
Introduction to Microeconomics Part 2
No comments:
Post a Comment