Why do we study economics? Have you gained anything from this unit? Discuss them.

Define economics from the perspective of wealth, welfare, and scarcity. Which definition better suits economics? Why?

"Study and knowledge of economics are extremely useful and important." Explain.

Explain the distinction between microeconomics and macroeconomics.

What do you understand by "positive economics" and "normative economics"?

Explain why economics deals with the allocation and efficient utilisation of scarce resources only.

In recent years, especially around big cities, there is the problem of air pollution and the likelihood of poisoning is high. Given this scenario, do you think that air is a free resource? Justify your answer.

Explain the main features of the various decision-making units of an economy.

General government gets its income mainly from taxes levied on

• households and business firms in the form of direct and indirect taxes

• goods and services it provides to the producers

• factor services it provides to households.

• none of the above

Households spend an enormous portion of their income in purchasing goods and services from the

• producers

• government

• other consumers

• none of the above