Professional Documents
Culture Documents
Lecture Outcomes
• To understand the interplay of business and
economics
• To explore the functionality of business
economics from micro and macro level
News Discussion
What is Economics?
• 1.Unlimited wants
• 2.Limited resources
• 3.Alternative use of resources
• 4.Problem of choices
Where does India stand in ranking
as per 2019-2020 in terms of GDP
• A 4th
• B. 8th
• C. 11th
• D. 5th
Economics is a logic of choice. It teaches the
art of rational decision making in economizing
behavior to deal with the problem of scarcity.
Latest News
Micro and Macro Economics
• Prof. Ragnar Frisch coined these two terms in
economics These two terms are derived from
Greek words MIKROS meaning small and
MAKROS means large.
What do you mean by the supply
of goods?
• a) Stock available for sale
• b) Total stock in the warehouse
• c) The actual production of the good
• d) Quantity of the good offered for sale at a
particular price per unit of time
• Correct Answer is d
What do you mean by a mixed
economy?
• Correct Answer is b
• Micro Economics
Micro economics is that branch of economics that
deals with the study of the behavior and action of
only individual economic unit in detail. Eg.
Demand of consumer
• Macro Economics
Macro economics is that branch of economics
which deals with the study of aggregate or average
behavior of the entire economy. Eg: Demand of
country’s citizen
Difference between Micro and Macro economics
• Rationality
– Consumers maximize utility subject to given money
income.
– Producers maximize profit subject to given resources or
minimize cost subject to target return.
Types of Economic Analysis