Questions and Answers
The ______ of demand refers to the responsiveness of the quantity demanded of a good to changes in its price or other influential factors.
elasticity
The ______ function shows the various combinations of inputs that can produce a given level of output.
production
The ______ of supply states that as the price of a good increases, the quantity supplied of the good also increases, ceteris paribus.
law
The ______ cost is a cost that remains the same even if the level of production changes.
Signup and view all the answers
The ______ of production is a period of time in which at least one input is fixed.
Signup and view all the answers
The ______ is the highest amount of output that can be produced with a given set of inputs.
Signup and view all the answers
The ______ of returns states that as the quantity of a variable input is increased, the marginal product of that input will eventually decrease.
Signup and view all the answers
The ______ of scale refers to the cost advantages that a firm can achieve by increasing its production levels.
Signup and view all the answers
The ______ run supply curve of an industry shows the relationship between the price of the product and the quantity supplied in the short period.
Signup and view all the answers
A ______ is a market structure in which there is only one buyer of a particular good or service.
Signup and view all the answers
The ______ national product is the total value of all final goods and services produced within a country's borders.
Signup and view all the answers
The ______ income is the income that is available to individuals for disposal after paying taxes.
Signup and view all the answers
Inflation is a situation in which there is a sustained ______ in the general price level of goods and services in an economy over a period of time.
Signup and view all the answers
The ______ price is the price that is likely to prevail in a market in the long period.
Signup and view all the answers
The ______ curve of an industry shows the relationship between the price of the product and the quantity supplied in the long period.
Signup and view all the answers
The concept of ______ refers to the study of individual economic units such as households and firms.
Signup and view all the answers
The ______ approach to consumer behaviour of demand is based on the idea that utility is measurable and can be compared.
Signup and view all the answers
The ______ curve is a graphical representation of various combinations of two goods that provide the same level of satisfaction to the consumer.
Signup and view all the answers
The ______ of demand states that as the price of a good increases, the quantity demanded of that good will also increase, ceteris paribus.
Signup and view all the answers
The ______ is the graphical representation of the relationship between the price of a good and the quantity demanded of that good.
Signup and view all the answers
The ______ is the excess of the maximum amount that a consumer is willing to pay for a good over its market price.
Signup and view all the answers
[Blank] economics is concerned with the study of individual economic units such as households, firms, and markets.
Signup and view all the answers
The ______ Possibility Curve (PPC) is a graphical representation of the various combinations of two goods that can be produced given the available resources and technology.
Signup and view all the answers
Study Notes
Introduction to Economics
- Economics definition and central problems of an economy
- Production Possibility Curve (PPC) and Opportunity Cost
Subject Matter of Economics
- Divisions of Economics: Traditional and Modern approaches
- Microeconomics and Macroeconomics
- Inductive and Deductive methods of Economic Investigation
- Economics: a Science or an Art?
- Positive and Normative Economics
Laws of Economics
- Marshall's definition of Economic Laws
- Nature of Economic Laws
- Basic assumptions in Economics
Basic Terms and Concepts in Economics
- Wants, goods, and classification of necessaries
- Classification of goods/wants and services
- Utility, forms of utility, value, price, money, wealth, and welfare
- Income, savings, and investment, consumption
Consumer Behaviour
- Approaches to consumer behaviour of demand: Marginal or Cardinal utility approach and Ordinal utility approach
Marginal or Cardinal Utility Analysis of Demand
- Assumptions and Law of Diminishing Marginal Utility
- Law of Equi-Marginal Utility
Ordinal Utility Analysis or Indifference Curve Analysis
- Assumptions and indifference map
- Indifference curve, Marginal Rate of Substitution, and price line or budget line
- Consumer's equilibrium through indifference curve analysis
Consumer's Surplus
- Meaning and assumptions
- Explanation and difficulties in measuring consumer's surplus
- Importance of consumer's surplus
Theory of Demand
- Concept of demand, definition, and Demand function
- Determinates of demand, Demand schedule, and Individual consumer demand
- Market demand, Demand curve, and different kinds of demand
- Interrelated demand and Law of demand
Elasticity of Demand
- Meaning of elasticity of demand
- Types of elasticity of demand (price, income, and cross elasticity)
- Degrees of price elasticity of demand and determinants
- Measurement of price elasticity of demand and practical importance
Theory of Production
- Producer's behaviour and Supply: Meaning of supply, supply function, and supply schedule
- Supply curve, Law of supply, and assumptions
- Determinants of supply, movement vs. shifts of the supply curve
- Price elasticity of supply and degrees of price elasticity of supply
Production Economics
- Characteristics of dairying as a business and differences between dairy production and industrial production
- Dairy production economics and basic production problems in economics
- Short run and long run production, terms, and concepts in production economics
Production Function
- Types of production function: Input-Output Relationship
- Returns to a factor or Short run production function
- Law of Returns and Law of Variable Proportion
- Returns to Scale or Long run production function
- Law of Increasing returns to scale, Law of Constant returns to scale, and Law of Decreasing returns to scale
- Production function with two variable inputs
- Production isoquants, isocost lines, and elasticity of substitution
- Isocline
Concepts of Costs
- Cost of production: explicit cost and implicit cost
- Fixed cost and variable cost, short run and long run costs
- Total cost, average, and marginal costs
- Relationship between total, fixed, and variable costs
- Related cost concepts and Law of costs
Economies and Diseconomies of Scale
- Supply curve of industry: short run supply curve and long run supply curve
- Causes for changes in supply and economies and diseconomies of scale
Concept of Market
- Elementary concepts of markets, market definition, and essential features of a market
- Classification of market based on geographical area, function, nature of competition, and degree of competition
- Market structures based on the degree of imperfect competition
- Salient features of perfect competition, monopoly, and monopolistic competition
- Comparison between perfect competition, monopoly, and monopolistic competition
Pricing and Output under Different Market Situations
- Market price and normal price
- Price determination under perfect competition, monopoly, monopolistic competition, and oligopoly
National Income
- Concepts of national income: Gross domestic product (GDP), Gross national product (GNP), Net national product (NNP), Net domestic product (NDP)
- National income at factor cost, personal income, disposable income, and Per capita income
- Inflation and Deflation
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your understanding of the basics of economics, covering definitions, central problems, production possibility curves, and more!