Economics Flashcards
The word economics draws it’s origin from which word and country??
Greek word-
Oikonomia
Adam smith’s 1st book/masterpiece was in which year and name it.
“An enquiry into the nature and causes of wealth of nations”
YEAR--1776
Meaning of Oikonomia
Household
OR
Management of household
End-?
Means-?
End–wants
Means–resources
Resources are absolutely (wholy) scarce or relatively (comparatively)??
Relatively scarce
Heart of business economics??
Micro economics
Location of industry is micro or macro concept??
Micro
Factor pricing is micro or macro concept??
Micro
Economic condition of a section of people is a micro or macro concept??
Micro concept
Behavior of firms is a micro or macro concept??
Micro
Another name for micro economics?
Price theory
Or
Slicing theory
Till 19th century economics was known as??
Political economics
Business economics is also known as what?? And why??
Managerial economics
Bcz it is the integration of economic theory with business practice
Another name of capitalist economy??
1)Free market
2)Laissez faire
3)Market economy (only buyers & suppliers)
Concept of socialist economy was first founded by??
And in their which book and which year??
Karl Marx and Frederic engels
BOOK– the Communists Manifesto
Year– 1848
Law of demand is given by whom??
Prof. Alfred marshall
Graph presentation–
X axis??
Y axis??
X axis– quantity demanded
Y axis– price
Terms for these
1) Growing GDP
2) GDP stop in growing phase
3) declining GDP
4) Stop while declining
1) Expansion/ boom/ upswing
2) Peak of boom or prosperity
3) Contraction/ downswing/ recession
4) trough/ depression
Turning points in a business cycle??
Peak and trough
Economics is said to be overheated at which phase of business cycle??
And also state the phase where involuntary unemployment is at peak??
1) Contraction phase
(Overheated– supply > demand)
2) Contraction too
What are types of economic indicators and what they tell us??
Economic indicators tell us ke konsa phase chl raha ha business ka
Types–
1) leading indicators
2) lagging indicators
3) coincidence or concurrent indicators
Relation between leading and lagging indiactors
If leading indicator signal the onset of business cycle, lagging indicator confirm this trend
Chain of indicators business cycle.
Consumer demand decrease (Leading)
Production decrease
Profits decrease
Employment decrease ((Lagging ind))
Different names of production method
( national income)
1) Value added method
2) Inventory method
3) Output method
4) product method
Mixed income of self employed??
( National income)
Combined factor payments which are not distinguishable.
Like there are labour income as well as capital income too
Who calculates national income in India??
MOSPI – Ministry of statistics and programme implementation
|
Dpt.
|
CSO– Central statistics office
|
NAS– National accounts statistics
Ex ante?
Ex post?
Ex ante– expected
Ex post– happened
AC>AR
Means that firm is making losses in the economy
If that would be AVC > AR or TVC > TR then firm needs to shut down
When elasticity is 0, more than 1 or less than 1
What are it’s various cases related to price.
E=0 (extreme case of price insensitivity)
Means no change in QD no matter the price
E>1 (quantity demanded is relatively sensitive to price change)
Means QD changes more
E<1 (QD is relatively insensitive to price change)
Means QD changes less as compared to price change
E=1 (Means change in QD equals to change in price)
E= infinity (small changes in price leads to change in QD)
