Hello everyone, Welcome to the video on Managerial
Economics. I’m Dr. Smriti Mathur, working
as an Assistant Professor at Babu Banarasi
Das University, Lucknow. I’ll be taking
you through the journey of Managerial economics.
Before going deep into the concepts of Managerial
Economics, it is important for us to understand
the basics of Economics. This video focuses
on the introduction to Economics, economic
problems and opportunity cost. We will also
discuss definitions of economics given by
Adam Smith, Marshall, Prof. Robbins and Paul
Samuelson. We will also cover the subject
matter of economics which includes nature
of economics, relationship of economics with
other sciences and limitations of economics
and methods of economic analysis which includes
inductive method and deductive method.
The science of economics was born with the
most influential publication - “An Inquiry
into the Nature and Causes of Wealth of Nation”
by Adam Smith in the year 1776 which is today
called as the Wealth of Nation. Indeed, he
is commonly known as the father of economics.
This publication remains the quintessential
text in economic science. He was the first
to realize that specialization and division
of labor were the primary source of productivity,
and he was the first to conceptualize the
invisible hand principle demonstrating the
tendency of free markets to regulate themselves
by means of competition, supply and demand
and self-interest. One important point worth
noting is that in the beginning the name of
economics was “Political Economics”.
The word Economics in English has been derived
from the Greek word Oikos means “a house”
and Nemein means “to manage” which gives
combined meaning as managing a household using
the limited funds available in the most economical
manner possible. Economics has the basic function
of studying the ways in which people, households,
firms and nations maximize their utilization
of scarce resources and opportunities. Hence,
economics can be termed as a social science
focusing on satisfaction of human wants by
efficient utilization of scarce resources,
confronted with the problem of choice or the
problem of allocation of resources to their
alternative uses for achieving the objectives
of maximization of satisfaction at consumer
level, maximization of profit at producers
level and maximization of welfare at national
level. Therefore, Economics is sometimes called
the “Science of Scarcity and Choice”.
Now before going deeper into the concepts
of economics, it is important to understand
its basic terminologies. First term is the
scarcity of resources. Human wants are unlimited
and productive resources such as land and
other natural resources, skilled labor, raw
material, capital equipment with which to
produce goods or services to satisfy those
wants are scarce and limited. Scarcity of
resources requires that efficient and optimum
use of resources be made so that we should
get most out of them and maximum possible
satisfaction of the people is achieved. Unlimited
wants for resources leads to the problem of
choice. The problem of choice from the viewpoint
of the society as a whole refers to which
goods and in what quantities are to be produced
and how productive resources allocated for
their production to achieve the greatest possible
satisfaction of the people. So, scarcity and
choices are inseparable at all levels of decision-making.
At the consumer level, scarcity means limited
income and choice means allocation of income
to the purchase of different goods and services
in a manner such that he maximizes his satisfaction.
At the producers level, scarcity means limited
resources and choice means allocation of resources
to the production of different goods and services
in a manner such that he maximizes profit
and at the national level, scarcity means
usage of resources in a manner such that social
welfare is maximized. The scarcity of resources
relative to human wants gives rise to various
basic economic problems called as central
problems of the economy. These problems are:
what to produce i.e. what goods and in what
quantities are to be produced by a society.
Second problem is how to produce i.e. what
methods or techniques a society will decide
to produce goods. Third economic problem is
for whom to produce i.e. how the national
product is to be distributed among members
of the society. Last term is opportunity cost.
Due to scarcity of resources, the economy
must make a choice among alternative goods
and services it can consume or produce with
its limited resources. While making a choice,
a rational decision-maker, be it a consumer
or a producer or government must decide on
the basis of the value of the next best alternative
forgone. For example: with a given money income,
you are considering to see a movie in a cinema
hall with your two friends. Suppose, the next
best thing you give up to purchase three movie
tickets is the book on economics. So, a book
on economics is called the opportunity cost
of three movie tickets.
Next topic of discussion is the definition
of economics. There are a plethora of definitions
of economics available in the field. From
time to time, various known economic experts
have provided different definitions of economics.
These definitions have been classified under
the following categories due to their diversified
meaning. This slide shows the timeline of
development of definitions of economics. To
ease our learning, I have prepared this timeline
clearly stating the development of four definitions
of economics. First definition of economics
is called the Science of Wealth, given by
Adam Smith in his book “An Inquiry into
the Nature and Cause of Wealth of Nations”
in 1776. Second definition of economics is
called Science of Welfare, given by Alfred
Marshall in his book “Principles of Economics”
in the year 1890. Third definition of economics
is called the Science of Scarcity and Choice
making, given by Prof. Robbins in his book
“An Essay on the Nature and Significance
of Economic Science” in 1932. Last category
of definition is called Science of Dynamic
Growth and Development, given by Samuelson
in his book “Economics: An Introductory
Analysis” in 1948.
Now we will study about these definitions
in detail. Let's start with the first definition
of economics called as “Science of Wealth”,
given by Adam Smith. He defined economics
as - “An Inquiry into the Nature and Causes
of Wealth of Nations”. His definition exhibits
following features. First, wealth is the central
point of economics i.e. creation and accumulation
of wealth is the only way for the economic
growth of the country. It studies how does
a man produce wealth for consumption, exchange
and distribution. Secondly, he considers every
man as economic man i.e. all the actions of
a man is guided by his self-interest and rational
behavior. Thirdly, he considers only material
items i.e. production of different varieties
of goods as wealth of a country. Non-material
items i.e. services rendered by teachers,
doctors were not considered as a part of a
country’s wealth. But, Economics as a science
of wealth was severely criticized. Firstly,
his definition has narrow scope as he only
considers material goods. Economics should
include non-material things also. Secondly.
This definition emphasized upon wealth by
stating that wealth generation is the sole
purpose of life. This definition ignored the
fact that wealth is the means of human welfare,
not an end. Therefore, a group of economists
condemned economics by calling it the Gospel
of Mammon, Science of Bread and Butter and
dismal science. Thirdly, Adam Smith assumed
that individual and social interests are non
- conflicting, is not always correct. Individual
and social interests may conflict with each
other. Lastly, Adam Smith definition gave
no emphasis on scarcity and problem of choice.
These two concepts are the core issues of
an economic system.
Second definition of economics called Science
of Material Welfare was given by Alfred Marshall.
He was the first economist who shifted the
emphasis of economics from wealth to welfare.
He pointed out that for economics, wealth
is not an end in itself but it is only a means
to an end; the end being the promotion of
human welfare. He tried to make the study
of economics an engine of social betterment.
He defined economics as ““Economics is
a study of mankind in the ordinary business
of life; it examines that part of individual
and social action which is most closely connected
with the attainment and with the use of the
material requisites of well-being”. Important
points worth noting in his definitions are-
first, this definition considers economics
as the study of man which occupies the prominent
place in the economic study. The subject matter
of economics is to study mankind, not the
wealth. In his words, “Economics, on one
side, a study of wealth, and on the other
and most important side, is a part of the
study of man”. Secondly, economics studies
man’s life in the ordinary business of life.
Ordinary business of life includes those human
activities which are concerned with production,
consumption, exchange and distribution of
wealth. Third, economics is concerned with
the science of material welfare of human beings
and it studies those activities which are
connected with the attainment and use of material
requisites of well - being. Lastly, welfare
definition has viewed economics as studies
as to which action is right or wrong for the
evolution of well-being of man. Fourthly,
according to Marshall, economics is considered
as a social science which is associated with
the study of economic difficulties encountered
by the members of an organized social group.
Marshall’s definition is also not free of
criticisms. Prof. Robbins criticized Marshall's
definition. Firstly, Marshall has narrowed
the scope of economics by including only the
material, normal and economic activities within
its purview. Secondly, Marshall study is only
concerned with the study of material things,
but it is difficult to separate material welfare
from the other type of welfare. According
to Robbins, economics also inquires how the
prices of immaterial services such as professional
singers, actors etc. Third, this definition
covers only the social groups or their members
in individual capacity. Others, who do not
belong to any society or those living in isolation,
are totally exhausted, despite their contribution
to the economic system. Fourth, Marshall considers
economics as objective and is measurable but
Robbins considers welfare as a subjective
thing and it varies from person to person.
Economics is concerned with any goods and
activities which are generally thought to
be harmful to human welfare but are studied
in economics such as liquor. Finally, Marshall
considers economics as normative science but
according to Robbins, economics is a pure
or positive science.
Third definition is called as Science of Scarcity
and choice making given by Prof. Robbins.
Economics is the science which studies human
behavior as a relationship between ends and
scarce means which have alternative uses.
This definition is based upon the following
facts. First fact is that man’s wants are
unlimited. In his definition, ends implies
wants and for satisfying wants the man uses
resources. That man’s wants are economic
problems to arise. If man’s wants are limited,
then no economic problem would have arisen.
Second fact which gives rise to economic problems
is that resources are scarce in relation to
wants. Because resources are scarce, all wants
cannot be satisfied. Therefore, human beings
have to decide for the satisfaction of which
wants, resources should be used and which
wants should be left unfulfilled. Third fact
is that the resources or means have alternative
uses, for example, monetary resources can
be utilized for production of consumer goods
or capital goods. It has to be decided how
the resources have to be allocated among different
uses. Fourth fact is that economics is neutral
between ends i.e. whether goods and services
are conducive to human welfare or not, economics
should study them if they satisfy the wants
of the same men. Last fact is that economics
is a science of choice. Whenever the resources
are scarce and the wants are many, the question
of choice arises. So, this definition brings
to light the basic economic problem which
confronts the society but has also been criticized
on several grounds. Firstly, Robbins definition
has been criticized on the ground that it
is not justified in his past to oppose making
economics as an engine of social welfare.
His definition is concerned with how a man
and society uses its scarce resources to achieve
maximum possible satisfaction of its wants
which is nothing else but maximum welfare.
Secondly, Robbins definition has been criticized
on the ground that economics is neutral between
ends. According to many economists, if economics
has to play an important role in promoting
social welfare and economic growth, it has
to take decisions regarding what is good and
bad to achieve these ends. So, if economics
is to serve as an engine of social betterment,
it would have to abandon the neutrality between
ends or objectives. Thirdly, Robbins definition
is static and independent as he leaves important
issues such as national income, unemployment,
poverty, trade cycle etc. untouched. Today,
macroeconomics has become more important and
economics should be capable of undertaking
a critical and objective analysis of the core
of macroeconomic analysis. Fourthly, Robbins
definition lays undue prominence to scarcity
problem. Other economists were of the belief
that not only scarcity of resources is behind
the economic problem but the abundance of
resources as well as excessive production
is also responsible for economic problems.
Robbins definition is also criticized on the
ground that it has reduced economics to a
mere value theory i.e. the theory of product
and factor pricing. According to him, economics
should study only the allocation of resources
among the production of various goods and
consequently how the prices of goods and factors
are determined. But, the scope of economics
is wider than the allocation of resources
and the price theory. Also, Robbins definition
considers economics as positive science but
it is normative also. According to various
economists, it is the responsibility of the
economists to offer suggestions in order to
overcome the economic issues.
Now, we will discuss the difference between
the Welfare definition given by Alfred Marshall
and Scarcity and choice making definition
given by Prof. Robbin. First basis of difference
is economic activity. Marshall's definition
believes in only material activities which
promote material welfare whereas Robbins definition
includes both material and immaterial activities
to tackle the problem of choice. On the basis
of treatment of economics, Marshall’s definition
treats economics as social science whereas
Robbin’s treats economics as pure or natural
science. Next point of basis is type of science.
Marshall’s definition considers economics
as normative science conversely Robbin’s
definition considers economics as positive
science. On the basis of nature, Marshall’s
definition is practical in nature whereas
Robbin’s definition is theoretical in nature.
The concept of welfare in Marshall’s definition
is objective and applicable equally to every
person or everyplace whereas the concept of
scarcity in Robbin’s definition is subjective
in nature and it varies from person to person
and place to place. Last basis of difference
is qualitative or quantitative concept. The
concept of welfare in Marshall’s definition
is qualitative phenomenon, and we cannot measure
it whereas the concept of scarcity and choice
making in Robbin’s definition is qualitative
phenomenon, and we can measure it.
Now, let’s move towards the last definition
of economics known as science of Dynamic Growth
and Development given by Samuelson. According
to him, “Economics is the study of how people
and society end-up choosing, with or without
the use of money to employ scarce productive
resources that could have alternative uses
to produce various commodities overtime and
distribute them for consumption now or in
the future, among various persons and groups
in the society. It analyses costs and benefits
of improving patterns of resource allocation”.
This definition is very comprehensive and
does not restrict to material well-being or
money measure as a limiting factor. But, it
considers economic growth over time. Thus,
a study of economic growth and development
and of economic stability forms an integral
part of the study of economics. Important
points worth noting in this definition include
- first, Samuelson’s definition is concerned
about efficient allocation of resources i.e.
link between limited resources and unlimited
human wants and the resultant economic problem.
Second, Paul Samuelson had laid emphasis on
the significance of time factor. It deals
with the problem of choice in a dynamic manner.
This feature is an important improvement over
Robbin’s definition. Third, Paul Samuelson's
definition is more elaborative. It includes
all the economics within the purview of economics,
even the barter economy where money measurement
is not possible. Fourth, this definition discusses
cost benefit analysis for the betterment of
the resource distribution system. Also, this
definition takes into account the sharing
pattern of scarce resources among the various
consumer groups and individuals in a society.
Lastly, Samuelson’s definition highlights
the study of macroeconomics. This definition
has advantages. Firstly, this definition is
a realistic definition of an economic problem
which includes unrestrained human wants and
difficulties in satisfying them due to the
lack of adequate resources. Secondly, Samuelson
was of the opinion that economics is oldest
among arts and newest among the group of sciences.
Thirdly, growth oriented definition considers
economic welfare as an integral and important
part of the study of economics. Study of economics
includes both material and non-material approaches
for overall economic welfare. Fourthly, this
definition, along with analysis of problems,
offers well thought - out practical solutions
to those problems. Lastly, this definition
treats economics as a dynamic subject. It’s
study not only includes the current economic
problem, but also the economic problem likely
to be faced in the near future.
Now, we will move further and talk about the
scope of economics. Economist J. M. Keynes
in his book - “The Scope and Method of Economics”,
has included the four points under the study
of the scope of economics which includes the
subject matter of economics, nature of economics,
relationship of economics with other sciences
and limitations of economics.
The subject matter of economics is concerned
with what is studied within economics. Subject
matter of economics includes traditional approach
and modern approach. Chart clearly depicts
the traditional approach to the subject matter
of economics. It stems from wants which are
unlimited but means to satisfy them are limited
which give rise to economic problems. Economic
activities are conducted to solve this problem.
Economic Activity is the activity of providing,
making, buying or selling commodities or services
by people to satisfy day-to-day needs of life.
Economic activity includes production, Consumption,
Investment, Exchange and Distribution. Here,
production is used for consumption and investment.
Consumption is the activity which is concerned
with the utility of goods and services for
the direct satisfaction of wants. But, we
all know human wants are unlimited as a result
of which, new wants arise after satisfaction
of one want and the whole process is repeated.
Investment is the activity which leads to
increase in physical and human capital. It
is used for production of other goods and
services. But, means to satisfy unlimited
wants again leads to economic problems. This
process continues forever circularly. Economic
System is a system of production, resource
allocation and distribution of goods and services
within a society or a given geographic area.
It includes the combination of the various
institutions, agencies, entities, decision-making
processes and patterns of consumption that
comprise the economic structure of a given
community. It includes Capitalist Economy,
Socialist Economy and mixed Economy. Economic
Policies covers the systems for setting levels
of taxation, government budgets, the money
supply and interest rates as well as the labor
market, national ownership, and many other
areas of government interventions into the
economy. It includes monetary Policy, fiscal
Policy, economic Policy, Industrial Policy
etc.
Modern approaches to the subject matter of
economics includes price theory and income
theory. Price theory is concerned with the
flow of goods and services from the business
firms to consumers, the composition of the
flow and pricing component of the flow. It
is related to an individual person or business
situation and studies economic variables such
as demand, supply, production, consumption
etc. The study of individuals is called microeconomics.
Income theory is concerned with the economy
which examines the integration among the various
aggregates, their determination and causes
of fluctuations in them. It is related to
the economy as a whole and studies economic
variables such as income, employment, economic
growth, inflation etc. The study of economics
as a whole is called Macroeconomics. Important
point to keep in mind is that Prof. Ragner
Frisch of Oslo University divided economics
into microeconomics and macroeconomics in
1933.
The term microeconomics is derived from the
Greek word “Mikros” meaning small. Microeconomics
may be defined as that branch of economic
analysis which studies the economic behavior
of the individual unit, may be a person, a
particular household or a particular firm.
It is a study of one particular unit rather
than all the units combined. Microeconomics
makes a microscopic study of the economy.
Microeconomic theory seeks to determine the
mechanism by which the different economic
units attain the position of equilibrium,
proceeding from the individual units to individual
industries and markets. Microeconomics is
concerned with important questions of economy
which includes the kind of product to be produced
and its quantities, methods or technique of
production, division of output of goods and
services among the members of the society
and efficiency of the society’s production
and distribution. Scope of microeconomics
includes firstly, product pricing i.e. the
theory of consumer’s behavior and the theory
of production and cost. Secondly, Factor pricing
i.e. theories of wages, rent, interest and
profits. And lastly, theory of economic welfare.
The term macroeconomics is derived from the
Greek word “Makros” meaning large. Macroeconomics
may be defined as that branch of economic
analysis which studies the behavior of not
one particular unit, but of all the units
combined. Macroeconomics is helpful in understanding
the working of the whole economy by studying
all the essential aspects of an economy such
as theory of employment, economic development,
national income etc. as well as in formulation
of economic policies. Macroeconomics proves
to be crucial for testing and development
of laws and theories established in microeconomics.
Scope of macroeconomics includes firstly,
theory of income, output and employment with
its two constitutes namely, the theory of
consumption function and the theory of investment
function. Secondly, theory of price which
constitutes theories of inflation, deflation
and reflation. Thirdly, theory of economic
growth dealing with the long-run growth of
income, output and employment. Lastly, theory
of distribution relating to the relative shares
of wages and profits in the total national
income.
Scope of economics also includes the nature
of economics. To inquire into the nature of
a subject, it is essential to know whether
the subject is a science or an art or both.
If it is a science, whether it is a positive
science or normative science or both. Science
is a systematic body of knowledge concerning
the relationship between causes and effects
of a particular phenomenon. A subject is considered
as a science if it is a systematized body
of knowledge which studies the relationship
between cause and effect, it is capable of
being observed, collected, classified, tabulated
and analyzed, it has its own methodological
apparatus and it should have the ability to
forecast. Like science, economics studies
the cause and effect relationship between
economic phenomena for example, the law of
demand explains the cause and effect relationship
between price and quantity. Like science,
in economics, facts are observed, collected,
classified, tabulated and analyzed systematically
and then interpreted. Like science, economic
laws are universally applicable such as law
of diminishing marginal utility, law of equi
- marginal utility etc. Like science, it is
capable of being measured, the measurement
in terms of money. Like science, it has its
own methodology of study and it forecasts
the future market condition with the help
of various statistical and non-statistical
tools. This proves that economics is a science.
But, according to some economists, economics
is not a perfect science rather it is a social
science because it examines the social behavior
of human beings with regard to allocation
of scarce resources in order to meet the needs
of each individual in the society. Economics
does not only involve production and distribution
of goods and services, but also the human
factor. Samuelson called Economics “the
queen of the social sciences”. Now, the
question arises, whether economics is a positive
science or a normative science. Positive science
is concerned only with “What it is”. It
deals with things as they are and explains
causes and efforts without making value judgements
whether it is right or wrong. Economics as
a positive science focuses on the description,
quantification, and explanation of economic
developments, expectations, and associated
phenomena. It relies on objective data analysis,
relevant facts, and associated figures. It
attempts to establish any cause-and-effect
relationships or behavioral associations which
can help ascertain and test the development
of economics theories. There are no instances
of approval-disapproval in positive economics.
An example of a positive economic statement:
"Government-provided healthcare increases
public expenditures." Normative science is
concerned with “What ought to be”. It
is concerned with the ideals. It explains
whether a thing is good or bad. It lays down
policies and rules to achieve what is considered
to be good. It evaluates the things. Thus,
normative science may be called applied science.
Economics as a normative science focuses on
the ideological, opinion-oriented, prescriptive
and value judgements aimed toward economic
development, investment projects, and scenarios.
It is subjective and value-based, originating
from personal perspectives, feelings, or opinions
involved in the decision-making process. An
example of a normative economic statement
is: "The government should provide basic healthcare
to all citizens.". Next, art has been defined
as the practical knowledge for accomplishing
specific objectives. Science gives us principles
of any discipline however, art turns all these
principles into reality. As an art, economics
has various branches, consumption, production
etc. which provides practical solutions to
various economic problems. It helps in solving
various economic problems which we face in
our day - to - day life. Thus, according to
Prof. Chapman, “Economics studies economic
facts and events in a real way as a positive
science. It explores the possibilities of
what ought to be the status of economic matters
as normative science, and finally, it finds
solutions to fulfill desirable economic ends
as an art”. The Consortium of Social Science
Association (COSSA) considers science and
art are complementary to each other. Therefore,
Economics is regarded both as a Science and
an Art.
Now, we will move towards the relationship
of economics with other subjects. Economics
is closely related with Political science
because branches of economics such as public
finance, economic planning, monetary and fiscal
policies are greatly influenced by political
thought. There is a close relationship between
economics and statistics as economics depends
on data for measurement of changes in economic
aggregates like the national product, consumption,
savings, investment, expenditure and value
of money. They use statistical methods for
verifying economic principles and testing
hypotheses. Mathematics concepts and techniques
are useful in economics for increasing the
sales and profit and reducing the cost. Various
mathematical tools and techniques such as
calculus, matrix, differential etc. are used
in economics. Economics is also related to
accounting. This is because both of them are
concerned with the same subject matter -- goods
and services. Economics analyzes the variables
related to goods and services, such as the
production, consumption and trade, whereas
accounting involves record-keeping. Operation
Research and economics are also closely related.
Operations Research provides various tools
such as linear programming models, inventory
models, game theory etc. which helps to solve
the issues related to planning and allocation
of scarce resources. Management and economics
are also related. The various aspects of management
such as finance, marketing, production etc
comes from the analysis of economic systems.
Therefore, study of economics is considered
essential and important for the students of
management and other social sciences. Along
with these components, scope of economics
includes limitations also, i.e. what is not
included in economics. Economics studies only
human activities and does not study the activities
of imaginary persons. The study done by economics
is based only on rational man. A rational
consumer is willing to maximize his satisfaction
and if he is a rational producer, he will
always be willing to maximize profit. The
laws and principles of economics are based
on various assumptions such as other things
being equal. Assumptions of economics may
not work in all the cases. The laws of economics
are based on trends which are neither exact
nor universal as the laws of natural sciences.
Economics is controversial, there are different
opinions to the same problem by different
economists.
Now, we will move towards the last topic of
this video i.e. Economic Analysis. Economic
analysis is the systematic approach to ascertain
the best possible use of the available scarce
resources. Economic analysis essentially entails
the evaluation of costs and benefits. It starts
by ranking projects based on economic viability
to aid better allocation of resources. There
are two methods of economic analysis. First
is the induction method of economic analysis.
The Inductive method which is also called
an empirical method was adopted by the “Historical
School of Economists". It involves the process
of reasoning from particular facts to general
principle. It is an ascending process 
in which facts are collected, arranged and
then general conclusions are drawn. First
step in the inductive method is to find out
the problem and its gravity in detail. This
is followed by the collection of relevant
data, its categorization, study and analysis.
Once the data analysis is completed, specific
observations are made and conclusions are
drawn with regard to the problem. Lastly,
observations made are used to arrive at generalizations
in a rational and scientific manner. This
method is very near to reality. It is a dynamic
method of arriving at economic theories and
is very useful for macroeconomics. But this
method is a slow process. Second method is
the Deductive method of economic analysis.
Deductive method is also called the Abstract
method or Analytical method or Hypothetical
method. It goes from general to particular.
This method accepts certain universal truths
and tries to arrive at inference about a particular
event through a process of logical analysis
and reasoning. First and foremost step under
the deductive method is identification of
the problem related to unemployment, inflation,
poverty etc. this is followed by designing
of assumptions which would form the foundation
of the hypothesis. After this, hypotheses
are formed on the basis of assumptions and
common logics. Last step is to testify and
verify the hypothesis formulated at above
stages. This method makes use of certain core
principles and conclusions arrived at through
other methods, analyzes them and comes out
with innovative inferences. It is based on
static analysis and is more suitable for microeconomics.
This is a Quick Process.
At the end of this video, you all will be
able to answer following questions:
Discuss the definitions of Economics.
Explain following concepts - Scarcity, Choice,
Economic problem and Opportunity cost.
Discuss traditional and modern approach to
subject matter of economics.
Distinguish between Micro and Macro economics.
Explain the nature of economics.
Explain the relationship of economics with
other subjects.
What are various methods of economic analysis?
