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What is Economics?

1.What is economics all about OR what does the study of economics involve?
How is the need to choose related to concept of cost?

2a) . Define Diminishing Marginal Utility
b) . Given two goods X and Y, how does a consumer achieve equilibrium?
c) What happens to consumer equilibrium if the price of one of the commodities falls?

3. Identify and explain approaches to measurement of national Income (NI)
and Highlight major drawbacks associated with each approach.
Why is it difficult to compare NI statistics internationally?

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1.What is economics all about OR what does the study of economics involve?
Economics is the branch of social science that deals with the production and distribution and consumption of goods and services and their management
How is the need to choose related to concept of cost?
The need to choose is governed by the Law of demand, which says that higher the cost of a good, lower is the demand. Lower is the cost of the good, higher is the demand. That is why, a demand curve is always a downward sloping curve with a negative ...

Solution Summary

The expert determines what economics are all about. The consumer equilibrium prices are identified.

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