Introduction To Economics (Statistics) Flashcards
Who said economics is the science of wealth?
Adam Smith
Who gave the scarcity definition?
Lionel Robbins
Who gave wealth definition?
Adam Smith
Who gives the welfare definition?
Alfred Marshall
Growth oriented definition has given by?
Samuelson
Economics has been derived from the two greek words ____ and ______
Oikos (house) and Nemein (to mange)
Wealth in economics refers to?
It refers to those goods which satisfy human wants
What was Adam Smith interested in studying?
He was mainly interested in studying the ways by which the wealth of all nations could be increased
According to Marshall, economics is the study of man and it inquires what?
It enquires, how a person gets his income and how he uses it
The scarcity definition is based on?
- Unlimited wants
- Scarcity of resources
- Alternative uses
What is scarcity?
Scarcity refers to situation when resources are not enough to satisfy all the wants of its people
The basic reason for existence of economic problems is
Scarcity
Economics is concerned with?
Economics is concerned with the selection of resources under conditions of scarcity
Economic problems do not always arise from scarcity. They may also arise due to______ and the example is_____
Abundance of goods. The great depression of 1930s in USA.
According to Samuelson, economics is the study of how man and society choose ,with or without money ______
To employ scarce resources, which could have alternative uses. To produce various commodities, overtime, and distribute them for the consumption of now and the future.
What are the key points of the growth oriented definition?
- Resource allocation
- Sustainability.
- Social and welfare perspective
What do you mean by positive economics?
Positive economics deals with what economic problems are and how they are actually solved
Give two examples of positive economics
- India is overpopulated.
- Prices are rising.
What is normative economics?
Normative economics deals with what ought to be or how economic problems should be solved
Give two examples of normative economics
- India should be less populated.
- Prices should not rise.
Economics can be considered an art because it requires _________ for practical application of laws
Human imagination
What are economic activities?
Economic activities referred to those activities which are undertaken to earn a living
What are non-economic activities?
Activities which are not concerned with the creation of money or wealth. They are inspired by sentimental reasons and are performed out of love, sympathy, etc
What are the three main economic activities?
- Consumption.
- Production.
- Distribution.
What are the four factors of production?
- Land.
- Labour.
- Capital.
- Entrepreneur.
Land is unlimited in supply, true or false?
False
Land is a fixed factor of production. True or false?
True
Which factor of production varies in quality?
Labour(skilled and unskilled)
What is capital?
Man-made resources used to produce goods and services. Ex: machinery, tools, buildings, technology etc
Entrepreneurship is the ____
Ability to organise land, labour, and capital to produce goods and services
What are the rewards or returns of the four factors of production?
Land - rent
Labour - wages
Capital - interest
Entrepreneur- profit
Consumption is an economic activity which deals with ______
Use of goods and services for the satisfaction of human wants
Distribution is that economic activity, which studies _______
How income generated is distributed among the factors of production
