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 of the economy
* Economic welfare
* Partial equilibrium analysis
* Marginal analysis
25. What is mean by limitation of microeconomics?
* It is not capable of explaining the functioning of any economy as a whole. * It assumes full employment solving the problem relating to public finance. * Fiscal policy
26. What are the scope of macroeconomics?
* Theory of national Income
* Theory of employment
* General price level
* Theory of economic growth
* International trade
27. What is mean by limitation of macro economics?
* Dependence on individual units
macro-economics are based on the sum total of individual units. * Heterogeneous units
Macro economics heterogeneous units are measured in different ways. 28. What are the macro economic goals and instruments?
Four categories of macro economic
* Target variable
* Intermediate variables
* Leading indicator variables
* Instrument variables
29. Difference between micro – economics and macro – economics No.| MICRO| MACRO|
1.| Micro economics is concern with small segmentsEg: Individual customer, households, individual prices| Macro is concern with large segments of the total economy – total employment total consumption, national income.| 2.| Micro economics deals with economic affairs. In the small in concerts with individual dimensions of economic life| Macro economics deals with economic offairs. “In the large”.| 3.| Micro economic analysis presents the microscopic view of the economy.| Macro economic analysis furnishes with the macro scopic view of the economy.|
30. What is economic growth?
31. What is micro economic environment?
32. What are macro economic environment list out?
* Social environment
* Technology environment
* Legal environment
* Economic environment
* Political environment
* Cultural environment
33. What is macro economic environment
It determines an opportunities of firm to promote its business and also study on the present for expending the business activates. 34. What is the marketing intermediator
In a marketing intermediator firm play’s a buying of selling of role and distributing its product to the final buyers. 35. What is supplier?
It is one of important factory of external environment of affirm it is supplier of inputs like rawmaterial, components. A supplier smoth working of business firms required it should have ensured material. 36. What is customer?
Customer is our boss a people who by and use the firm’s product and services it is called customers. 37. What is mean by political & legal environment?
Business or closely related to government political philosophy of a government is a grate influence over business policies. 38. What are two competitive product?
* Direct competitive products
* Indirectly competitive products
39. What is technological environment?
The technological environment application of knowledge in science invention and innovations to solve the problem 40. What are the elements of cultural environments?
* Manners & customs
* Technology & material culture
* Education – transmitting value
41. What is welfare?
Welfare associated with well being providing support for the elderly homeless orphaned and disadvantaged is something only wealthy counties can afford to any great extent. 42. What is market?
Market is a place where buyers and sellers engage in face to face bargaining. 43. What are types of markets?
* Financial market
* Share market
44. What does role of Government in the macro economy?
* Fiscal policy
* Monetary policy
* Growth policy
45. What is equilibrium?
Equilibrium is apposition from where there is no incentives for change equilibrium in the factor market production employed in their best possible uses. 46. What is fiscal policy?
The fiscal policy refers to taxation and expenditure decision of the Governent Keynes showed that balanced budget is not good under all circumstance. 47. What is monetary policy?
Monetary policy is an important tool of controlling inflation in the economy it is generally believed that large expansion in money supply causes rise in price level. 48. What is mean by growth policy?
Money economists doubt the efficacy of fiscal and monetary policies to eliminate the fluctuations in the economic activity trough demand management. Growth policy such as roads water, highways, power, tele – communication. 49. What is Externality?
An externality arises when a pension engages in all activity that influences the well-being of a bystander and neither pays nor receives any compensation for the effect. 50. What are the types of Externality?
* Negative externality
* Positive externality
* Negative externality in production
51. What are the role of markets?
* Provide place for market
* Incentive to producer
* Generation of employment
* Index of economic situation
* Supply demand adjustment
52. What is welfare improvement
Welfare associated with well-being welfare is improved by he provision of support or services for those not necessarily able to help themselves margins of society. * Pensions
* Benefits-sickness, disability
53. What is role of Government?
* Encourage saving and investment
* Encourage investment from abroad
* Encourage education and training
* Establish secure property rights and political stability * Control population growth
54. What is foreign portfolio investment?
It means investments financed with foreign money but operated by domestic residents portfolio investment is the entry of funds into purchases in the country’s stock and bond markets sometimes for speculations. 55. What is the political stability?
Property rights refers to the ability of people to exercise authority over the resources they own economy wide respect for property rights is an important drerequistnes for the price system to work. 56.What is control population Growth?
Population is a key determinant of a country’s labor force large populations tend to produce greater total GDP. Population growth is the change in a population over time population using per unit time for measurement. 57. What is negative externalities?
A whole range of industrial and commercial activities can give rise to negative externalities population of various kinds on an obvious. Eg:- Scant regard effects.