Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

introductory micro economics


Published on

micro economics plus two topics

Published in: Education

introductory micro economics

  1. 1. WELCOME<br />
  2. 2. Part 1<br />Micro economics<br />
  3. 3. DEFINITION OF ECONOMICS<br />WEALTH DEFINITION<br />By Adam smith<br />Defined economics as a science of wealth<br />His book An enquiry in to the nature and causes of the<br /> wealth of nations. Published in1776<br />Considers material wealth only<br />Economics studies wealth getting and spending activities<br />
  4. 4. Welfare definition<br />by<br />Alfred Marshall<br />1.Economics is the science<br /> of human welfare<br /> 2. Study of mankind in the <br />ordinary business of life<br />3. Economics is a social science<br />4. Study only economic activity<br />
  5. 5. Scarcity definition<br />SCRCITY DEFINITION<br />By Lionel Robbins<br />The important features are<br />1.Economics is a positive science<br />2. It is the study of human behavior<br />3.Our wants are unlimited<br />4.Resources are limited<br />Resources can be put in to alternative uses<br />
  6. 6. Development concept<br />BY PAUL A SAMUELSON<br /> Economic problem arises<br /> because of unlimited wants and<br /> scarce means<br /> Wants have the tendency to<br /> increase in the modern <br />dynamic economic system<br />Economics suggest means <br />to the problem of<br /> unemployment<br />production , inflation<br />It explains how the resources are distributed <br />
  7. 7.
  8. 8. WHY DO ECONOMIC PROBLEM ARISE?<br />Why do <br />Economic<br />Problem<br />arise<br />{<br />{{{<br />UNLIMITED WANTS<br />DIFFERENT PRIORITIES<br />LIMIOTED MEANS<br />MEANS HAVING <br />ALTERNATIVE USES<br />
  9. 9. CENTRAL PROBLEMS OF AN ECONOMY<br />Whom to<br />produce<br />Problem<br />Of Efficiency<br />HOW TO<br />PRODUCE<br />WHAT TO <br />PRODUCE<br />Better utilization of resources<br />Problem of choice<br />Capital intensive or labour intensive<br />Problem of distribution<br />
  10. 10. PRODUCTION POSSIBILITY FRONTIER<br />It is a curve which shows the various combination of two goods that can be produced with given technology<br />It is downward sloping because more production of one good is associated with less of the other<br />GOOD B<br />0 good A<br />
  11. 11. Production possibility curve<br />
  12. 12.
  13. 13. OPPURTUNITY COST<br /> MEANS WHAT ONE GET <br /> FROM THE NEXT BEST USE<br /> If a manager get RS 5000 as salary from firm A<br /> He will select another occupation only if he<br /> get the same or higher salary <br /> Then the opportunity cost is RS 5000<br /> It is also called transfer earning<br />
  14. 14. Marginal Opportunity Cost<br />The rate at which one<br /> commodity is sacrificed <br />for production of <br />additional unit of the other<br />
  15. 15. NORMATIVE ECONOMIC ANALYSIS<br /> It is a matter of opinion<br /> It is the desirability of<br /> economic mechanism <br /> Value judgment<br /> It considers what is desirable<br /> and what is not desirable<br />