Economics Ch 1 introduction notes : part 1

B.M. Academia help you to make your work easy . So here we are with notes of Micro Economics chapter 1 Introduction to micro economics

This are divided into two parts 

Check out the part 2 of this chapter here  

 Economics and economy 

Origin : Greek words oikos meaning household and Nemein meaning management

It means management of household 

DEFINITION

It is the science of human behavior concerned with allocation of scarce means to maximize satisfaction of 1. Consumer 2. Producer 3. Society

Economic problem Rises because

1. Resources are limited

2.wants are unlimited

3. Resources have alternative uses

Scarcity 

When you have less what you wish for to acquire something you need sacrifice

To achieve its objective it need to

1. Maximize consumer satisfaction
2. Maximize producer profit 
3. Maximize society welfare 

Important: father of economics: Adam Smith 
                            Father of microeconomics: Alfred Marshall 

Economy : a place where people earn their living  

Two major branch of economics

1. Micro economics

2. Macro economics         

Positive and Normative economy 

Types of economic activity :

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