Opportunity cost and trade off

           Opportunity Cost 

Giving up something else to get something and the value of the thing given up is called opportunity cost 

For Example Of Opportunity cost

 Between study and sleep , if one studies without  sleep ,then sleep is his / her opportunity cost.

                                           OR

Between Book and dress, if someone purchase book without dress , the dress is his / her opportunity cost .

                          Trade Off

Trade -off usually refers to the decision that depends on the opportunity cost .If we want to take one thing out of two things , we must give up  the other thing. That is , if we want to increase the quantity or quality of one thing , we  must decrease the quantity or quality of the other thing.

                               For Example Of Trade Off

Anyone can trade off between studying and vacationing . If someone studies without taking vacation or taking vacation without studies.

What is Economics and different definitions of economics by different economists

 

Economics : Economics is the key to the development of a society.

In our society  , resources are limited but scarcity is unlimited.Economics balances unlimited scarcity with limited resources.The main goal of economics is the fulfills our needs by limited resources.

Economics is involved in every aspect of our life.

Economics ensures the production of goods and services and their equitable distribution using limited resources so we can say economics is the study of scarcity.The main goal of economics is to try to satisfy the limited resources and to achieve the welfare of the society.

Economics definition is defined by different economists is the different ways.Adam smith is the known as the father of economics.

According to Adam Smith,  

     "Economics is the science of       wealth "

       According to Adam Smith,

Economics deals with production, distribution and consumption.

According to Samuelson,

"ECONOMICS IS THE STUDY OF HOW PEOPLE AND SOCIETY CHOOSE WITH OR WITHOUT THE USE OF MONEY,TO EMPLOY SCARCE PRODUCTIVE RESOURCES WHICH COULD HAVE ALTERNATIVE USES.TO PRODUCE VARIOUS COMMODITIES OVER TIME AND DISTRIBUTE THEM FOR CONSUMPTION NOW AND IN THE FUTURE AMONG VARIOUS PERSONS AND GROUPS OF SOCIETY ".

According to Lionel Robbins,

"The science which studies human behaviour as a relationship between ends and scarce means which have alternative uses"
                          ..................

Consumption function in economics

 Consumption function shows the positive relationship between income and consumption.

When income increases, consumption also increases for normal goods and when income decreases, consumption also decreases for normal goods.

Consumption functions can be expressed as...

C=A+bY

C=consumption function 

A=Autonomous consumption 

b=marginal propensity to consume 

Y=Disposable income.

What Is Microeconomics and Macroeconomics ,Difference Between Microeconomics And Macroeconomics

             What is Microeconomics?

Microeconomics is a branch of economics that discusses how individual ,firms and households behave during an economic activity and how they make decisions when they use scarce resources.

Microeconomics is also known as price theory.  Because microeconomics highlights the importance of price between buyers and sellers. How buyers and sellers determine prices through their activities is discussed in microeconomics.

        What is Macroeconomics?

Macroeconomics is a branch of economics that deals with the overall economy.

Macroeconomics Focused on Inflation, interest and foreign exchange rates, and the balance of payments, price level, economic growth rate, national income, gross domestic product (GDP), and unemployment .Macroeconomics is also concerned with fiscal policy and monetary policy

Difference Between  Microeconomics And Macroeconomics

Microeconomics is concerned with the decisions of individuals , firms and households ,but macroeconomics is concerned with the overall economy. Microeconomics is also known as price theory and Macroeconomics is also known as income and employment theory.

Microeconomics focuses on individual income  and Macroeconomics focuses on national income .Microeconomics describe price of goods and services .Macroeconomics describe price level ,inflation, unemployment

                      Other Definition Of Microeconomics

      What is Microeconomics?

Microeconomics deals with the behavior of individuals, firms and households and how they make decisions.

 

Microeconomics deals with how an individual makes decisions about himself and his family and how he makes decisions about their consumption . Also, microeconomics deals how the firm produces the goods and services used by scarce resources and how these goods and services are distributed and used.