1. Define Economics.

    Economics is a social science which deals with human wants and their satisfaction .It is mainly concerned with the way in which a society chooses to employ its scarce resources which have alternative uses,for the production of goods for present and future consumption .

2. Why do we study economics ?

    We study economics because there is scarcity of many goods which we want .This problem is common to the individual as well as the state.Economics is the science of scarcity .And scarcity is the basic fact of life .

3. Explain the concepts of micro and macro economics.

    In micro economics ,we deal with problems such as the output of a single firm or industry, price of a single commodity and spending on goods by a single household.

      Macro economics studies the economic system as a whole .It is a study of the relation between broad economic aggregates such as total employment ,savings and investments.

4. Discuss the nature and scope of economics .

       Economics has become one of the important branches of social sciences.It is of great practical value in our daily life.Most of the problems of the modern state are economic in nature .So economists play an important role in the affairs of the state.

5. Why is economics a study of choices ?

   Our wants are unlimited but resources are limited .This leads to choice making .if there is unlimited supply of goods which satisfies our wants the problem of choices will not arise . Choice is the essence of economic activity .So economics is the science of choice.

6. Explain the wealth definition of economics.

    Adam smith ( 1723 - 90 ) defined economics as follows: "Economics is the science of wealth " He is the author of the famous book "Wealth of Nations "(1776).

7. Explain the welfare definition of economics.

    Alfred Marshall defined economics as a study of mankind in the ordinary business of life .An altered form of this definition is Economics is a study of man's actions in the ordinary business of life .

8. Explain that economics is a social science.

    The social sciences are academic disciplines that study human society and social relationships.Economics is a social science because it deals with human society and behaviour and particularly those aspects concerned with how people organise their activities and how they behave to satisfy their needs and wants.It  is a social science because its approach to studying human society is based on the social scientific method .

9. Define Scarcity.

    Scarcity is the situation in which available resources or factors of production are finite,where as wants are infinite .There are not enough resources to produce every thing that human beings need and want .

10. Explain the growth definition of economics.

     According to Samuelson "Economics is a social science concerned with the way society chooses to employ its resources which have alternative uses to produce goods and services for present and future consumption ."