12 Questions
What is the central focus of economics?
Scarcity of resources and choices among their alternative uses
Why do people need to make choices according to the text?
Due to limited resources or scarcity
What is one reason for the emergence of economic problems?
Scarcity of available resources
What does economics aim to do with limited resources according to the text?
Satisfy numerous human wants
Apart from individual decision-making, what macro variables does economics cover?
National income, public finance, international trade
Which concept is central to the science of economics?
Efficiency in resource utilization
According to Adam Smith, how did an individual's pursuit of self-interest benefit society?
Through the concept of 'invisible hand' leading to collective societal interests
What was the main criticism of Adam Smith's definition of economics according to Ruskin and Carlyle?
It promoted selfishness and went against ethics
In Alfred Marshall's definition, what distinction did he make between material and immaterial things?
Material things are tangible while immaterial things are intangible
What aspect of human life does Alfred Marshall emphasize in his definition of economics?
Economic welfare in the ordinary business of life
How did Alfred Marshall define the scope of economics in relation to human actions?
Economics examines actions promoting material requisites of well-being for individuals and society
What was a significant shift in focus from Adam Smith's wealth definition to Alfred Marshall's welfare definition?
From individual gain to societal welfare
Explore the fundamental concepts of economics including production, exchange, consumption, scarcity of resources, and decision-making processes. Understand how economics analyzes the allocation of limited resources to enhance wealth and well-being.
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