introduction to micro economics

Thursday, 3 July 2025

Introduction to Micro-Economics

- 1.) Economy:- It is a system which provides people the mean
to work and earn a living.




Which has
economic relation with Which has no relation
other economies with other economic




2.) Scarcity:- when there is higher demand of resources than its supply then
this situation is known as scarcity.

3.) Economic problem:- it is the problem of choice, which arises due to:-
a ) resources are limited
b ) resources have alternative uses
c ) human wants are unlimited

4.) Economising of resources:- it means allocating the limited resources
in such a manner that economy produces maximum goods & services to
satisfy human wants i.e. e ective and e cient use of resources.




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, Causes of economic problem



1.) Limited resources:- problem of allocation of resources arises because
are not enough to satisfy each and every want of individual.

2.) Resources have alternative uses:- resources have alternative uses i.e.
when an individual chooses one option then that resource will not be
available for other uses.

3.) Unlimited wants:- human wants are unlimited and it is a never ending
cycle. After satisfaction of one want , another want arises.




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