Part-A- Microeconomics
Answer any five of the following -
a) Who is the father of economics?
b) When a consumer is assumed to be rational ?
c) What is production function ?
d) Define perfect competition.
e) What is scarcity and choice?
f) Define Microeconomics.
g) Mention any one assumption of law of demand.
Why a production possibility curve is concave to the ori
Answers
ANSWER::
a. Adam Smith
c. Production function, in economics, equation that expresses the relationship between the quantities of productive factors (such as labour and capital) used and the amount of product obtained.
d. the situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent and the market price of a commodity is beyond the control of individual buyers and sellers.
e. Scarcity refers to the finite nature and availability of resources while choice refers to people's decisions about sharing and using those resources. The problem of scarcity and choice lies at the very heart of economics, which is the study of how individuals and society choose to allocate scarce resources.
f. the part of economics concerned with single factors and the effects of individual decisions.
Answer:
A. Adam Smith is considered the father of modern economics.
C. Production function, in economics, equation that expresses the relationship between the quantities of productive factors (such as labour and capital) used and the amount of product obtained.
D. Perfect competition describes a market structure where competition is at its greatest possible level.
E. Scarcity refers to the finite nature and availability of resources while choice refers to people's decisions about sharing and using those resources. The problem of scarcity and choice lies at the very heart of economics, which is the study of how individuals and society choose to allocate scarce resources.
F. Microeconomics is the study of individuals, households and firms' behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
Explanation: