Que.: What is economics?
Ans.: According to Marshall “a study of mankind in the ordinary business of life.” Milton Friedman said that “economics is the science of how a particular society solves its economic problems”. The science that deals with the actions of individuals and societies directed toward meeting certain ends in a world where the means necessary to meet hose ends have alternative uses.
Que.: Destination between micro and macro economics?
|Micro Economics |Macro Economics | |1. The function of micro economics is microscopic. |1. The function of macro economics is telescopic. | |2. It is deals with relatively small objects such as a firm or an|2. It deals with relatively large objects, such as an industry | |individual. |or the whole economy. | |3. It discuss price or demand for as single goods. |3. It discusses the price level or aggregate demand. | |4. It examines low tax change affect a single firms out put. |4. It examines low tax change affects the output of the extra | | |economy. |
Que.: Key of macroeconomic variable.
Ans.: There are three types of key of macroeconomic variable. 1. Employment variable
2. Out put variable
3. Price variable
Employment variables are three types:
b. Self employed
c. Unemployed, unemployed rate denoted by U,
According to John M. Keynes unemployment are two types;
i. Voluntary unemployment
ii. Involuntary unemployment
Unemployment as a negative factor
• Social point of view
• Political point of view
• Economical point of view
Economical point of view are three types: