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What is economics?
Study of wealth management
Economics is management of
What is economics?
Management of
land,labour,capital,organisation
Definitions
Adam smith
Adam Smith (1776) defines the subject as
Definition of 'Microeconomics'
Macro economics
What is the definition of macroeconomics?
A: Definitions of Macroeconomics.
"Macroeconomics is that part of economics
which studies the overall averages and
aggregates of the system. (Kenneth Boulding)
Macro economics
Definition
"Macroeconomics deals with the functioning
of the economy as a whole.
Utility
It refers to satisfaction or use of a
commodity
Utility
Utility decides the demand as well as price
Utility meaning
Utility, or usefulness, is the ability of
something to satisfy needs or wants. Utility is
an important concept in Economics and game
theory, because it represents satisfaction
experienced by the consumer of a good.
Total utility
It refers to sum of utility of consumption of
many units
Apple1
Apple2
Apple---3
Total utility
Marginal utility
Marginal utility is an important economic
concept because economists use it to
determine how much of an item a consumer
will buy. Positive marginal utility is when the
consumption of an additional item increases
the total utility.
Cardinal utility
Cardinal utility is a view of utility
measurement based on the presumption that
the satisfaction of wants and needs is a
quantifiable characteristic of human activity.
In other words, utility can be measured with
numerical values (1, 2, 3, etc.) along a scale.
Ordinal utility
Ordinal utility is a view of utility
measurement based on the presumption that
the satisfaction of wants and needs is not a
quantifiable characteristic of human activity
and that preferences are subjective.
Preferences among goods can be ranked (first,
second, third, etc.) but not measured
according to a scale.
Definition
A psychological generalization that the perceived value
of, or satisfaction gained from, a good to a consumer
declines with each additional unit acquired or
consumed.
Utility
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