basic concept of economics and allocation of resources

avatar
Created by
suho

Cards (22)

  • The government can use taxation to redistribute income from the rich to the poor.
  • a science which studies unlimited human wants related to the limited resources is known as economics
  • what is economics ?
    a science which studies unlimited human wants related to limited resources .
  • according to Adam Smith economics is the study of wealth and distribution of wealth.
  • Marshall economics =Material welfare in the ordinary business.
  • Lionel Robbins =science which studies human behavior as a relationship between ends and scars.
  • Define Marshall economics ?

    economics is the material welfare in the ordinary business.
  • study of individual units of the economic is known as microeconomics.
  • the study of economy as whole is called macroeconomics.
  • macroeconomics deals with the aggregate performance of the entire economy.
    1. factor production is the process of producing a factor of production from another factor of production
  • The factors of production are land, labor, capital, and entrepreneurship.
  • features of land are.
    limited in supply.
    a free gift of nature.
    no geographical mobility
    permanent and in destruction
  • land cannot be created or destroyed.
  • Land can only be used once at any given time.
  • Profit motive: The objective of the organization is to earn profit and accumulate wealth. Profit is essential for the survival of the organization.
  • Profit is essential for the survival of the organization.
  • Group of persons: Organization is the group of persons contributing their effects towards certain goals. Organization begins where group of people combine their efforts for some common purpose.
  • Risk taking and uncertain baring: Risk taking, and uncertain bearing is a crucial feature of an organization. There is a risk of loss due to uncertain future like natural calamities, change in government policy.
  • Division of work is an important feature of an organization under the division of work, the entire work of business is divided into many departments and every department is divided into sub-workers.
  • what do you mean by risk taking and uncertain baring?
    risk of loss due to unsure future like natural calamities, change in government policy.
  • features of labor:
    an active labor
    a mobile factor
    perishable
    labor is not separated from laborer