This document discusses several key economic concepts: 1) It outlines the central problems of an economy including allocation of resources, achieving full employment, and achieving economic growth. 2) It explains the basic components of costs including fixed costs, variable costs, and total costs. 3) It describes changes in demand including movements along the demand curve and shifts of the demand curve caused by changes in price or other factors.

1. Costs
60
50
40
Fixed Costs
30
Variable Costs
20 Total Costs
10
0
0 1 2 3 4 5 6

2. Average Fixed Costs

3. TP, AP and MP

4. Changes in Demand
Movement along the Demand curve Shifts in Demand Curve
Decrease in Increase in
Extension of Contraction of Demand or Demand or
Demand Demand Downward shift in Upward Shift in
Demand Curve Demand Curve
Caused by change in price of the Caused by change in factors other
commodity than price of the commodity

5. CENTR PROBLEMS OF AN ECONOMY
AL
(1) Allocation of Resources
(2) How to Achieve Fuller
(i) What to produce and How
Utilization or Full
Much to Produce? Employment of Resources
(ii) How to Produce
(3) How to Achieve Growth
of Resources
(iii) For Whom to Produce

6. Economics is a Science of Human Behavoiur
Focusing Upon:
(b) Efficient
(a) Satisfaction of
Utilization of Scarce
human wants resources
Confronted With:
The problem of choice or the problem of allocation of resources
to their alternative uses
For Achieving the objectives of:
- maximization of satisfaction for the consumers
- maximization of profit for the producers
- maximization of welfare for the society

7. Economics is a Science of Human Behavoiur
Focusing Upon:
(b) Efficient
(a) Satisfaction of
Utilization of Scarce
human wants resources
Confronted With:
The problem of choice or the problem of allocation of resources
to their alternative uses
For Achieving the objectives of:
- maximization of satisfaction for the consumers
- maximization of profit for the producers
- maximization of welfare for the society