Tuesday, 18 August 2015

The Basic Economic Problem and Market Failures

Definition of Economics

Economics is the study of the problem of using the available factors of production as efficiently as possible so as to attain the maximum fulfillment of the society’s unlimited demands for goods and services.

According to Lionel Robbins: “Economics is the science that studies human behaviour as a relationship between ends and scarce means that have alternative uses.”


Keywords:
Microeconomics v/s Macroeconomics
The Economic Problem
Choices
Opportunity Cost
The Production Possibility Frontier
The Economic System
Subsistence Economies
The Capitalist System
Mixed Economies
Market Failure
Public v/s Merit Goods
Externalities

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