Microeconomics- Business Decision making

Microeconomics- Business Decision making a)Explain the role of microeconomics in business decision making. Ans) The role of microeconomics in business decision making can be explained as under: 1) Optimal resource utilization: The productive resources are scarce in the economy and microeconomics tells how the productive resources are allocated in the production of various goods and

Read More

Cardinal Utility Approach

Cardinal Utility Approach Very Short Questions Define utility. Ans) Utility is defined as the wants satisfying capacity of a commodity .In other words,it is the satisfaction obtained from the consumption of commodity. What do you mean by cardinal utility approach? Ans) Cardinal Utility approach is the method of analyzing utility which believes that utility is

Read More

Elasticity

Very short questions of Elasticity Define elasticity of demand. Ans) The elasticity of demand is the measure of responsiveness of demand for a commodity to the change in any of its determinants like price of the same commodity,price of the related commodity,income of the consumer,etc. What are the types of elasticity of demand? Ans)There are

Read More

Demand and Supply

Very short questions,Demand and Supply What do you mean by demand? Ans) Demand means the quantity of goods and services which consumers would buy in a market at a given time and price.In order to change desire into demand ,it is essential that the consumer should have both willingness and ability to pay. Define Demand

Read More

Introduction to Microeconomics

Some very short questions of Introduction to Microeconomics 1)Define an economic theory. Ans) An economic theory is defined as a model along with the specified and empirical economic variables, concepts and facts used to explain and predict the changes. 2).List out the elements of well defined economic theory. Ans)  The elements of well defined economic

Read More

Demand

Demand ,Determinants of Demand Demand: The quantity of goods and services that consumer are willing and able to purchase in the market at various prices during a period of time is called demand. Determinants of Demand(Factors affecting demand): The various factors that affects demand of a commmodity are as follows: a. Price of a commodity:

Read More

Ten principles of Economics

Nicolas Gregory Mankiw’s Ten Principles of Economics:   Nicolas Gregory Mankiw is an macroeconomist and Professor of economics at Harvard University.Mankiw proposed 10 principles of economics which is unified by several central ideas.These 10 principles of economics offer an overview about what economics is all about. How people make decisions 1.People face trade off: To get

Read More

Difference between Microeconomics and Macroeconomics

Difference Between Microeconomics and Macroeconomics  The difference between microeconomics and macroeconomics are as follows: Basis                                                                            Microeconomics Macroeconomics  

Read More

Introduction to Economics

Definition of Economics ,Economics is both Science and Art,Origin of Economics,Scarcity and Choice Economics: Economics is the study of how people allocate their limited resources to their alternative uses to produce and consume goods and services to satisfy their endless wants or maximize their gains. Economics is the social science that studies how people use

Read More