Basic Concepts Of An Economy

Question 1

What are goods? Or explain the term Goods.

Answer 1

Anything that is capable of satisfying human wants or anything which has utility is called goods in economics

Question 2

Explain the term Want

Answer 2

Want is a desire for a thing which is supported by an effort to acquire it.

Question 3

Explain the term Services

Answer 3

Services is a type of economic activity that is provided by one individual or an organization for the benifit of another

Question 4

What is Utility

Answer 4

The want satisfying power of a commodity is known as utility

Question 5

What is Wealth

Answer 5

Wealth refers to all the goods which can satisfy human wants and for which payments are made. In other words all economic goods are wealth.

Question 6

Explain the term Capital.

Answer 6

The term capital means PRODUCED MEANS OF PRODUCTION. It is used as an input in producing other goods. It is a stock, the amount of which can be increased in investment as well.

Question 7

Explain the term Land

Answer 7

In economics, land can be defined not only as the surface of the earth, but all those free gifts of nature the supply of which can be regulated.

Question 8

Explain the term Labour.

Answer 8

By labour we mean all types of human work- physical or mental- done with a view to earn an income.

Question 9

Explain the term Organization or Entreprise

Answer 9

Organisation refers to the services of an entrepreneur who controls, organises and undertakes all risks. Entrepreneurship as a factor of production is a combination of the three factors namely land, labour and capital.

Question 10

Explain Value in Use.

Answer 10

Value in use or ‘use value’ means want satisfying capacity or usefulness of the commodity