1.Introduction to the Indian Economy Flashcards
What is economics?
Economics is the study of how scarce resources are used to produce goods and services, and how those goods and services are distributed and consumed.
What are the three main stages of the allocation of resources?
The three main stages of the allocation of resources are production, distribution, and consumption.
What is the goal of economics?
The goal of economics is to maximize human satisfaction. This means that economists try to find ways to use scarce resources in the most efficient way possible to produce the goods and services that people want.
What are some of the factors that economists consider when studying the allocation of resources?
Some of the factors that economists consider when studying the allocation of resources include:
The availability of resources
The cost of resources
The demand for goods and services
The preferences of consumers
The government’s role in the economy
What is economics?
Economics is the study of the production, distribution and consumption of resources, or allocation of goods and services in society.
What is the main concern of economics?
Economics is concerned with the optimum allocation of scarce resources to maximise human satisfaction.
What is an example of a resource that is scarce?
A resource that is scarce is one that has a limited supply or availability, such as money, time, land, water, etc.
What is an example of a flow chart that illustrates the optimum allocation of resources?
One example of a flow chart that illustrates the optimum allocation of resources is the one shown in the image, which shows how a government/office gives salary to an employee, who then uses it for household expenses, buying groceries, preparing food and eating food.
What is the four sector model?
The four sector model is a macroeconomic model that shows the flow of goods, services, and money between four different sectors of the economy: households, businesses, government, and the rest of the world.
What are the four sectors of the four sector model?
The four sectors of the four sector model are:
Household sector: This sector represents all the households in the economy. Households are the consumers of goods and services, and they also provide the labor that businesses use to produce those goods and services.
Business sector: This sector represents all the businesses in the economy. Businesses produce goods and services, and they also employ the labor that households provide.
Government sector: This sector represents the government. The government provides goods and services, such as education and healthcare, and it also collects taxes from households and businesses.
Rest of the world: This sector represents all the other countries in the world. The rest of the world exports goods and services to the domestic economy, and it also imports goods and services from the domestic economy.
What is the purpose of the four sector model?
The purpose of the four sector model is to show how the different sectors of the economy interact with each other. The model can be used to analyze the impact of government policies, changes in consumer spending, or other economic events on the overall economy.
What is the Four Sector Model?
The Four Sector Model is a model of an open economy that comprises the household sector, business sector, government sector, and rest of the world.
What is the household sector?
The household sector is the sector that includes all the consumers in the economy who buy goods and services from the business sector and pay taxes to the government sector. They also receive income from the business sector and transfers from the government sector.
What is the business sector?
The business sector is the sector that includes all the producers in the economy who sell goods and services to the household sector, government sector, and rest of the world. They also pay wages to the household sector and taxes to the government sector. They also receive investment from the household sector and financial flows from the rest of the world.
What is the government sector?
The government sector is the sector that includes all the public authorities in the economy who provide public goods and services to the household sector, business sector, and rest of the world. They also collect taxes from the household sector and business sector and make transfers to the household sector. They also spend on government purchases from the business sector and rest of the world.
