--------- IS THE FUNDAMENTAL ECONOMIC PROBLEM OF HAVING UNLIMITED HUMAN WANTS AND UNLIMITED RESOURCES

THE SCIENCE WHICH STUDIES HUMAN BEHAVIOR AS A RELATIONSHIP BETWEEN ENDS AND SCARCE MEANS WAS GIVEN BY - ADAMSMITH/LIONEL ROBBINS

WHICH ARE THE TWO LEVELS OF STUDY OF ECONOMICS ---- AND -----

ALTERNATIVES THAT ARE GIVEN UP WHILE MAKING CHOICE OR CHOOSING ONE ALTERNATIVE TO THE OTHER IS TERMED AS -----

LIST OUT FACTORS OF PRODUCTION

----- IS THE INHERENT POWER OF GOOD OR SERVICE TO SATISFY A HUMAN WANT

THE WORD DEMAND IN ECONOMICS REFERS TO -------, ------- AND --------

1.       Match the following

Factors affecting Demand

FACTOR

EXPLANATION

1

Price

Goods that people tend to use together  (Mobile & SIM Card)

a

2

Consumer’s Income

Direct relationship between consumer’s income and demand

b

3

Government Policy

Goods that are used in place of one another (Pepsi and Coke)

c

4

Population

Inverse relationship between price of a product & demand

d

5

Price of Substitutes

Important role in determining the demand for a product or service

e

6

Price of Complements

Direct relationship between consumer’s income & demand

f

  Factors affecting Supply

FACTOR

EXPLANATION

1

Price

Taxes has an inverse and subsidies has a direct relationship

a

2

Availability of Resources

Inverse relationship between cost of production  and supply

b

3

Cost of Production

Direct relationship between availability of resources & supply

c

4

Technology

Direct relationship between price of a product & Supply

d

5

Government Policy

Favourable weather & natural factors will lead to increase in supply

e

6

Weather & Natural Factors

Direct relationship between Technology and  supply

f

AGGREGATE DEMAND IS WRITTEN SYMBOLICALLY AS AD = ---- + -----+------+-----

WHICH ARE THE FOUR FACTORS THAT AFFECT AGGREGATE DEMAND