Scope And Methodology Of Economics: Micro Economics

Scope and Methodology of Economics:

1. What is Economics?
2. Who contributed wealth definition of economics?
3. Who defined economics as “the study of the nature and causes of nations’ wealth or simply as the study of wealth”?
4. Who emphasized the role of the individual in the creation and the use of wealth while defining Economics?
5. “Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man”, - who contributed this definition of economics?
6. Who defined economics in terms of scarcity?
7. Define scarcity definition of economics?
8. What is growth definition of economics?
9. Who contributed growth definition of economics?
10. Who defined economics as ‘Economics is what economists do’?
11. Who defined Economics as ‘Economics is the logic of rational action’?
12. Who defined Economics as “Economics studies that part of social welfare which can be brought directly or indirectly into relationship with the measuring rod of money”?
13. Who defined Economics as “Economics studies how the produce of the earth is distributed”?
14. Distinguish between technical and economic efficiency?
15. What is production possibility curve?

Answers

1. Economics is the study of choice under conditions of scarcity. Hence it deals primarily with the concept of Scarcity.
2. Adam Smith in his ‘Nature and Causes of Wealth of Nations’ 1776.
3. Adam Smith.
4. Alfred Marshal.
5. Alfred Marshal in his ‘Principles of Economics’ 1890.
6. Lional Robbins in his Essays on the Nature and Significance of the Economic Science 1932.
7. “Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”.
8. “Economics is the study of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities over time and distributing them for consumption, now or in the future, among various persons or groups in society. It analyses costs and benefits of improving patterns of resource allocation”.
9. Paul A. Samuelson.
10. Jacob Viner.
11. Ludvig Mon Mises.
12. A.C. Pigou.
13. David Ricardo.
14. When a firm, industry or an entire economy utilizes its available resources fully and most effectively and thereby produces maximum possible output of goods and services with the given amount of resources, it is called technical efficiency. Economic efficiency (or allocative efficiency) is achieved by an economy when it is producing the combination of goods and services that people want or prefer and are able to pay for them, given their incomes. Economic efficiency implies that economy’s output-mix or pattern of production of goods and services is such that corresponds to the people’s scale of preferences. Attainment of economic efficiency also involves the achievement of technical efficiency.
15. Production possibility curve is a graphic representation of alternative production possibilities facing an economy.