BA Programme Economic (First
semester Students)
De nition of Economic
Economic is a social science that studies how individuals and society use limited (scare)
resources to satisfy their unlimited wants. Since resources are scare people have to make
choices about what to produce, how to produce and for whom to produce. Economic helps us to
understand these choices and how resources can be used in best possible ways.
In simple words in our daily life, we want many things like food,clothes, education, and comfort,
but we do not have unlimited money or resources. Economic studies how people decide to use
their limited income and resources to satisfy there needs and wants.
What are the central problem of an economic?
Every economy faces some basic problems because resources are limited and human wants are
unlimited. These problems are called central problems of an economic. There are three central
problems.
1.What to Produce
This problem is about deciding which goods and services should be produced and in what
quantity.
For eg Should the economic produce more food grains or more luxury goods like car and mobiles.
2.How to Produce
This problem deals with deciding how goods should be produced, which method of production
should be used.
For eg Should a good be produced using labour- intensive method ( more workers) or capital
intensive method ( more machines)?
3.For Whom to Produce
This problem is about deciding who will get the goods and services that are produced.
For eg Should goods be produced is mainly for the rich or poor or both?
Short conclusions
These central problems are arise due to scarcity of resources and unlimited wants
What is Microeconomic? Nature and Scope of
economic
Microeconomic is a branch of an economic it studies about the behaviour of an individual units in
an economic such as consumer, producer, rms and business. It helps us to understand how
these individuals make choices in the allocation of limited resources like time, money and labour.
It focuses on small part of the economic unit not the whole for eg how a consumer will decide
what to buy, how to set a price for a company product and how wages are determined for a
speci c job market.
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semester Students)
De nition of Economic
Economic is a social science that studies how individuals and society use limited (scare)
resources to satisfy their unlimited wants. Since resources are scare people have to make
choices about what to produce, how to produce and for whom to produce. Economic helps us to
understand these choices and how resources can be used in best possible ways.
In simple words in our daily life, we want many things like food,clothes, education, and comfort,
but we do not have unlimited money or resources. Economic studies how people decide to use
their limited income and resources to satisfy there needs and wants.
What are the central problem of an economic?
Every economy faces some basic problems because resources are limited and human wants are
unlimited. These problems are called central problems of an economic. There are three central
problems.
1.What to Produce
This problem is about deciding which goods and services should be produced and in what
quantity.
For eg Should the economic produce more food grains or more luxury goods like car and mobiles.
2.How to Produce
This problem deals with deciding how goods should be produced, which method of production
should be used.
For eg Should a good be produced using labour- intensive method ( more workers) or capital
intensive method ( more machines)?
3.For Whom to Produce
This problem is about deciding who will get the goods and services that are produced.
For eg Should goods be produced is mainly for the rich or poor or both?
Short conclusions
These central problems are arise due to scarcity of resources and unlimited wants
What is Microeconomic? Nature and Scope of
economic
Microeconomic is a branch of an economic it studies about the behaviour of an individual units in
an economic such as consumer, producer, rms and business. It helps us to understand how
these individuals make choices in the allocation of limited resources like time, money and labour.
It focuses on small part of the economic unit not the whole for eg how a consumer will decide
what to buy, how to set a price for a company product and how wages are determined for a
speci c job market.
fi fi fi
