| What is meant by Economics? | The term ‘Economics’ comes from oikonomikos which means ‘Management of households’. ‘Political Economy’ is renamed as ‘Economics’ by Alfred Marshall. |
| Define microeconomics? | Microeconomics is the study of the economic actions of individual units say households, firms, or industries.
Microeconomics covers:
Value theory [product pricing and factor pricing]
Theory of economic welfare. |
| What are the goods? | Goods called products ,commodities, things etc.,
Goods are transferable and have value in exchange goods can be preserved over a time |
| Distinguish goods from services. | The difference between goods & services |
| Name any two types of utility? | Time Utility: A sick man derives time utility from blood not at the time of its donation. but only at the operation – time, i.e., when it is used.
Place Utility: A student derives place utility from a book not at the place of its publication (production centre) but only at the place of his education (consumption centre). |
| Define positive economics. | Positive economics deals with what it is, its means, it analyses a problem on the basis of facts and examines its causes. |
| Give the meaning of the deductive method? | The deductive method is also named as an analytical or abstract method.
It consists in deriving conclusions from general truths.
It takes a few general principles and applies them to draw conclusions.
The classical and neoclassical school of economists notably, Ricardo, JS Mill, Malthus Marshall, Pigou applied the deductive method in their economic investigations. |
