Chapter-1
Definition and Subject matter of economics
1. What is non economic activity?
Man is a social animal. While living in society man undertakes different activities. Some of these
activities are meant for self satisfaction or for mere fun. Such activities are known as non
economic
activities. For example, if an individual sings songs for his own delight it is a non economic
activity.
2. What is economic activities?
There are some activities which are undertaken by man for earning income. These activities are
called
economic activities. If a singer sings for earning income then it will be regarded as an economic
activity
An individual earns income by participating in economic activities.
3. What is free goods?
Those goods, whose supply is unlimited and no price is to be paid for, are called free goods. For
example
sunlight, air etc., are given by nature and no price is to be paid for them.
4. What is economic goods?
Those goods, for which price is to be paid are called economic goods. Food, clothing etc., are
examples
economic goods.
5. What do you mean by want?
All desires, tastes and motives of human beings are called wants in Economics. Wants may
arise due to
elementary and psychological causes. Since the resources are limited, we have to choose
between the
urgent wants and not so urgent wants.
6. Give the classical definition of production?
, According to the classical view production is a social activity whose purpose is to change one
state of
matter into another. Let us take the example of agriculture. In the case of agriculture we have
one
purpose. This purpose is to get more crops from seeds, in other words, transformation of seeds
into crops
is the main objective of agricultural activity. Thus in agriculture we are changing one state of
matter into
another. Hence, agricultural activity is one type of production.
7. How many types of change in the state of matter. And explain them.
There are three types of change in the state of matter
1.Quantitative change, 2. Qualitative change 3. Spatial change
When we get crops from seeds, it is only quantitative change. But when steel is produced in the
factory
from pig iron, it represents a qualitative change. Similarly, when coal is extracted from coal
mines, it is a
spatial change. Whatever may be the nature of the change, we can say that production takes
place
whenever any type of change takes place.
8. Whether rendering of service is a production as per classical definition. Explain
According to the classical definition rendering a service is not production because in the case of
service
there is no transformation of matter. As for example services of doctors, teachers, artists, etc.,
are not to be
regarded as production according to the classical definition.
9. What is productive labour in the classical economic theory?
That type of
labour which transforms one matter into another is known as productive labour in the
theory.
classical economic
10. What is unproductive labour in the classical economic theory?
Any type of labour which is not used to transform one matter into another is known as
unproductive
Definition and Subject matter of economics
1. What is non economic activity?
Man is a social animal. While living in society man undertakes different activities. Some of these
activities are meant for self satisfaction or for mere fun. Such activities are known as non
economic
activities. For example, if an individual sings songs for his own delight it is a non economic
activity.
2. What is economic activities?
There are some activities which are undertaken by man for earning income. These activities are
called
economic activities. If a singer sings for earning income then it will be regarded as an economic
activity
An individual earns income by participating in economic activities.
3. What is free goods?
Those goods, whose supply is unlimited and no price is to be paid for, are called free goods. For
example
sunlight, air etc., are given by nature and no price is to be paid for them.
4. What is economic goods?
Those goods, for which price is to be paid are called economic goods. Food, clothing etc., are
examples
economic goods.
5. What do you mean by want?
All desires, tastes and motives of human beings are called wants in Economics. Wants may
arise due to
elementary and psychological causes. Since the resources are limited, we have to choose
between the
urgent wants and not so urgent wants.
6. Give the classical definition of production?
, According to the classical view production is a social activity whose purpose is to change one
state of
matter into another. Let us take the example of agriculture. In the case of agriculture we have
one
purpose. This purpose is to get more crops from seeds, in other words, transformation of seeds
into crops
is the main objective of agricultural activity. Thus in agriculture we are changing one state of
matter into
another. Hence, agricultural activity is one type of production.
7. How many types of change in the state of matter. And explain them.
There are three types of change in the state of matter
1.Quantitative change, 2. Qualitative change 3. Spatial change
When we get crops from seeds, it is only quantitative change. But when steel is produced in the
factory
from pig iron, it represents a qualitative change. Similarly, when coal is extracted from coal
mines, it is a
spatial change. Whatever may be the nature of the change, we can say that production takes
place
whenever any type of change takes place.
8. Whether rendering of service is a production as per classical definition. Explain
According to the classical definition rendering a service is not production because in the case of
service
there is no transformation of matter. As for example services of doctors, teachers, artists, etc.,
are not to be
regarded as production according to the classical definition.
9. What is productive labour in the classical economic theory?
That type of
labour which transforms one matter into another is known as productive labour in the
theory.
classical economic
10. What is unproductive labour in the classical economic theory?
Any type of labour which is not used to transform one matter into another is known as
unproductive
