Showing posts with label Basic Economics. Show all posts
Showing posts with label Basic Economics. Show all posts

What is opportunity cost? How / Is opportunity cost related with PPF?

Opportunity Cost:

Life is full of choices. Because resources are scarce, we must always consider how to spend our limited income or time. In a world of scarcity choosing one thing means giving up something else. If there is no increase in productive resources, increasing production of a first good has to entail decreasing production of a second, because resources must be transferred to the first and away from the second. 

What is production possibility frontier (PPF)? Explain.


Production Possibility Frontier (PPF) : In economics, a production possibility frontier (PPF) is a graph that shows the different rates of production of two goods that an individual or group can efficiently produce with limited productive resources. The PPF shows the maximum obtainable amount of one commodity for any given amount of another commodity or composite of all other commodities, given the society's technology and the amount of factors of production available. ... 

What are the differences between microeconomics and macroeconomics?

Differences Between Microeconomics and Macroeconomics: 

The study of economics is divided into microeconomics and macroeconomics by the modern economists. Both of them discuss the economical activities but are used in different sectors under different circumstances. In spit of having some similarities, they also have some differences which have been given below.

What are microeconomics and macroeconomics?

The study of economics is divided into microeconomics and macroeconomics by the modern economists. Both of them discuss the economical activities but are used in different sectors under different circumstances.

What are the three problems of economic organizations? How can the three problems of economic organization be solved in free and mixed economics?

Three Problems of Economic Organizations:

In every economy; economic organizations, irrespective of their type, have to face and solve three problems of economics. These three problems are as follows,

  1. What commodities are produced & in what quantities.
  2. How goods are produced.
  3. For whom goods are produced.

Description and solution to these problems in fee and mixed economies is given below.

Define Economics / Definition of Economics / What is Economics ?


          Economics : The word ‘Economics’ has been originated from the Greek word ‘Oikonomia’ which means ‘Management of household wealth’. As being social, humans face various wants and needs. Economics is all about those activities which occur to fulfill these wants and needs. In fact, Economics describes the economical activities of humans in daily life. Founder of Economics is Adam Smith. ...