2. ๏ Economics is a social science that deals
with the production, distribution, and
consumption of goods and services.
Or
๏ Economics is the study of how society uses its
limited resources.
๏ The Term Economics means that you have limited
resources and how will the resources be allocated.
4. ๏ Economics is basically scarce resources and
scarce resources means that resources are
very less and they are allocated as per the
priorities
Rs.500/-
MealFood
6. ๏ Micro- Economics : (Micro means small or tiny)
Study of small, little and tiny part of the
economy is known as micro- economics.
For example :
Suppose there are three individuals in the
economy(X,Y,Z) and there incomes are as
(1000,2000,3000) respectively.
So study x income, y income, and z income is known
as microeconomics.
๏ Study of the trees not the forest.
7. ๏ Macro- Economics: (Macro means large)
Study of large portion of the economy is known
as Macro- economics.
For example:
The three individuals
X Y Z
1000 2000 1000
total = 4000
4000 is the total contribution of 3 people toward the
economy of the country. When you study N.I, N.S,
Revenue and expenditure is known as macro
economics.
9. Positive
Economics
What is ?
Why do people use
money
Factual judgment and no
value judgments
Observed Economy
Normative
Economics
What ought to be?
Should people use money
Value judgments
Desired Economy
