Concept Of Utility: Jevon (1835-1882) was the first economist who introduced the concept of utility in economics. According to him ‘utility’ is the basis on which the demand of an individual for a commodity depends ‘Utility’ is defined as the power of a commodity or service to satisfy human want. Utility thus is the satisfaction which is derived by the consumer by consuming the goods. For example,... 

Cardinal Utility Analysis: Human wants are unlimited and they are of different intensity. The means at the disposal of a man are not only scarce but they have alternative uses. As a result of scarcity of resources, the consumer cannot satisfy all his wants. He has to choose as to which want is to be satisfied first and which afterward if the resources permit. The consumer is confronted in making... 

Importance of the Study of Economics: The importance and utility of the subject of Economics can be judged from this fact that it is now considered to be one of the most important and useful subject as compared to any other branch of knowledge. The reasons for gaining its importance are that it makes human welfare its direct and primary concern. It helps in raising the quality of economic life. As... 

Macro Economics: The name ‘macro’ is derived; from the Greek word “uakpo” which means huge or large. Macro-economics, the remaining half of economics, is the study of the manners of the economy as a total. In other words, macro economics deals with total or large aggregate such as national income, output and service, total spending, aggregate saving and aggregate asset and the general stage... 

Microeconomics is derived from a Greek word means small. Basically it is the study of particular economic units, firms, households, individual prices, wages, income, individual industries and commodities. The theory of microeconomics or price theory is based on the study of individual parts of the economy. We study the individual consumer’s demand for a good and to derive the market demand for a... 

Economic Analysis and Economic Policy: Economics, like other social sciences, has two aspects. One aspect is analytical and the other is practical. Both these aspects are of great importance because economic analysis is the basis for economic policy. These are, in fact, integral parts of each other. What is economic Theory? Economic analysis or economic theory is a body of economic principles built... 

Methods of Economics Analysis: An economic theory derives laws or generalizations through two methods (1) Deductive Method and (2) Inductive Method. These two ways of deriving economic generalizations are now explained in brief. Deductive Method: The deductive method is also named as analytical, abstract or prior method. The deductive method consists in deriving conclusions from general truths. It... 

The Nature of Economic Laws: Economics, like all other sciences, has drawn its own set of generalizations or laws. Economic laws are nothing more than careful conclusions and inferences drawn with the help of reasoning or by the aid of observation of human and physical-nature. In everyday life, we see man is always busy in satisfying his unlimited wants with limited means. In doing so, he acts upon... 

Scope of Economics: The scope of economics is the area or boundary of the economics study. In scope of economics we answer and analyze the following three main questions. (1) What is the subject matter of economics? (2) What is the nature of economics? (3) What are the limitations of economics? (1) Subject matter of Economics. There is a difference of opinion among economists regarding the subject-matter... 

The Problem of Economics: Milton Friedman, like Robbins, is of the strong view that economic problem arises when people try to satisfy their endless wants with limited resources which have alternative uses. These three basic facts of economic life which give rise to problem of economics are now discussed in brief. Human wants: Economic problem of mankind owes its origin to the fact that human wants...