Week 1

Question 1

What is Economics?

Answer 1

Economics is the social science studying the production, distribution and consumption of goods and services.

Question 2

What does Economics focus on?

Answer 2

It focuses on the behavior and interactions of economic agents and how economies work.

Question 3

What are the different branches or types of Economics?

Answer 3

Different branches of economics include:
Types: 
1) Microeconomics 
2) Macroeconomics 
3) Agricultural economics
4) Development economics
5) Political economics

Question 4

What is a consumer?

Answer 4

1. Consumers are the basic economic entity of an economy.
2. All the consumers have limited income, by which the consume goods & services directly and indirectly to maximize utility.

Question 5

What is producer?

Answer 5

A producer is one who makes and supplies goods or services.

Question 6

what are the different types of producers?

Answer 6

1. Agricultural Producers
2. Industrial Producers
3. Service Producers

Question 7

What is the role of the government in economics?

Answer 7

The government’s purpose in economy is:

1. To provide facilities
2. To promote economic stability and growth
3. it attempts to regulate and control the economy by numerous laws regarding economic activity.

Question 8

when does scarcity occur?

Answer 8

1. Scarcity occurs where it’s impossible to meet all unlimited the desires and needs of the people with limited resources i.e; goods and services.
2. Society must find a balance between sacrificing one resource, which will result in getting other.

Question 9

what does efficiency denote?

Answer 9

Efficiency denotes the most effective use of a society’s resources in satisfying people wants and needs

Question 10

What is the twin theme of economics?

Answer 10

The twin theme of economics states that:

1. Goods are ‘scarce’ and our Society must use it ‘efficiently’.
2. Scarcity means insufficient resources like land, labor, and capital.
3. Efficiency means maximum use of resources.

Question 11

Whats the difference between microeconomics and macroeconomics?

Answer 11

Microeconomics is the study of economics at an individual, group or company level.

Whereas Macroeconomics is the study of a national economy as a whole.
e.g Economy of Pakistan

Question 12

Why does an economy exist?

Answer 12

An economy exists because of two basic facts:

1) Human wants for goods and services are unlimited
2) productive resources used to produce goods and services are scarce

Question 13

Why does economics state that all wants cannot be satisfied?

Answer 13

According to economics, wants being unlimited and our resources being limited, we cannot satisfy ALL our wants.

Question 14

What are the fundamental questions of economics?

Answer 14

the fundamental questions in economics are:

1) What to produce?
2) How to produce?
3) And for Whom?

Question 15

What is ‘rational behavior’ in Economics?

Answer 15

In economics, rational behavior is a decision-making process based on making choices which provide optimal level of benefit or utility to the individual.
In other words, it is rational to try to get the best thing.

Question 16

What are the four types of economic systems?

Answer 16

1) Market economy
2) Command Economy
3) Traditional Economy
4) Mixed Economy

Question 17

What is Market Economy?

Answer 17

Market Economy is

an economic system in which individuals own and operate the factors of production.

Question 18

What is Command Economy?

Answer 18

Command Economy is an economic system in which the government owns and operates the factors of production.

Question 19

What is Traditional Economy?

Answer 19

Traditional Economy is an economic system that is based upon customs and traditions. It is based upon agriculture and hunting.

Question 20

What is Mixed Economy?

Answer 20

Mixed Economy is an economic system that has features of both market an command economics.

Question 21

What does slope measure?

Answer 21

Slope measures the relationship between two variables.