UNIT – 1
1. What is Economics?
Economics is the science which studies human behaviour as a relationship between ends and scare means which have alternative uses. 2. Definition of economics
According to “Adamsmith” Economic is a social science the deals with human behaviour pertaining to production, Exchange and consumption of goods and services. 3. What are basic concept of economic?
* Resource allocation
* Opportunity cost
* Diminishing marginal returns
* Marginal analysis
* Business objectives Externalities
4. What is mean by themes of Economics?
5. What are the three fundamental problems in the economy?
* What to produce
* How to produce
* For whom to produce
6. What are main features of scarcity?
* Multiplicity of ends or unlimited wants
* Scarcity of means
* Alternatives use of means
* Economic problem
* Science of choice
7. What is scarcity?
Economics deals with allocation of Resources which are scare then demand for such Resources a zero price exceeds their supplier.
Eg: Water is was a free goods in holden day but not there is a price tag. It as scare. 8. What is efficiency?
Efficiency means economic resources and used effectively as possible to satisfied the customers needs and desired. 9. What are the parts of Economic Efficiency?
* Productive Efficiency
* Allocative Efficiency
* Technical efficiency
* Manufacturing efficiency
* Network efficiency
* Market efficiency, pareto optimality.
10. What is Economics helps to various decisions making?
* Production decision
* Exchange decision
* Consumption decision
11. What is opportunity cost?
Opportunity cost of any activity is what we given up when we make a choice. In other words it is a loss of opportunities to pursue. The most attractive alternative given the same time an resources. 12. What are the time dimenstation of Economic?
* Short run
* Long run
13. What is Economics resources?
Land-Nature resources the “free gifts of nature”
Labour-The contribution of human beings
Capital-Plant and equipment
14. What is marginal cost?
Marginal cost it is a change in total cost which results from increasing the quantity by producing by one unit. 15. What is Economics as an art
According to “Marshall” regarded Economics as “a science pure and applied rather then a science and an art”. 16. What are the positive or normative sicence
A positive science may be define as a body of systematized knowledge concerning what is normative. Economics is a normative science of “what ought to be”.
17. Define PPF?
The production possibilities frontier shows the maximum output of any one commodity that the economy can produce together with the prescribed quantities of other commodities produced and the resources utilised. 18. What is ISO Revenue line?
The production possibility curve shows the various combinations of the two goods which can be produced with given resources the firm have to decide which combination out of the so many available most profitable. 19. What are two efficiency?
* Production efficiency
* Economic efficiency
20. What is production efficiency?
It means when a economic can’t produce more of one goods without producing less of another goods. 21. What are the Economic Efficiency
* Profit maximization
* Firm value maximization
* Sales maximization
* Management utility
* Market structure
22. What is micro Economics?
Micro economics deals with the analysis of small individual units of an economy such as individual, consumers, individual firms, individual industries and markets.
23. What is macro economics?
Macro economics studies the large aggregate such as total employment. National product or national income of an economy. 24. What are the features of micro economics
* Individuals units
* Microscopic study...