Commerce Notes | EduRev

 Page 1


Introduction to Microeconomics
Page 2


Introduction to Microeconomics
Synopsis
• Meaning of Goods, Services, Individual, Resource.
• Meaning of Economics
• Economy
• Types of Economy/ Organisation of Economic Activities
• Economic problem
• Why an economic problem arise
• Central problem of economy
• Production Possibility Frontier
• Positive and Normative Economics
• Microeconomics and Macroeconomcs
Page 3


Introduction to Microeconomics
Synopsis
• Meaning of Goods, Services, Individual, Resource.
• Meaning of Economics
• Economy
• Types of Economy/ Organisation of Economic Activities
• Economic problem
• Why an economic problem arise
• Central problem of economy
• Production Possibility Frontier
• Positive and Normative Economics
• Microeconomics and Macroeconomcs
Key Terms
• Goods: It means physical, tangible objects used to 
satisfy people’s wants and needs.
• Services: It means the intangible satisfaction of 
wants and needs.
Page 4


Introduction to Microeconomics
Synopsis
• Meaning of Goods, Services, Individual, Resource.
• Meaning of Economics
• Economy
• Types of Economy/ Organisation of Economic Activities
• Economic problem
• Why an economic problem arise
• Central problem of economy
• Production Possibility Frontier
• Positive and Normative Economics
• Microeconomics and Macroeconomcs
Key Terms
• Goods: It means physical, tangible objects used to 
satisfy people’s wants and needs.
• Services: It means the intangible satisfaction of 
wants and needs.
Key Terms
• Individual: It means an individual decision making 
unit, it can be a person or a group like a household, a 
firm etc.
• Resource: It means those goods and services which 
are used to produce other goods and services. For 
instance, land, labour, tools and machinery. Etc.
Page 5


Introduction to Microeconomics
Synopsis
• Meaning of Goods, Services, Individual, Resource.
• Meaning of Economics
• Economy
• Types of Economy/ Organisation of Economic Activities
• Economic problem
• Why an economic problem arise
• Central problem of economy
• Production Possibility Frontier
• Positive and Normative Economics
• Microeconomics and Macroeconomcs
Key Terms
• Goods: It means physical, tangible objects used to 
satisfy people’s wants and needs.
• Services: It means the intangible satisfaction of 
wants and needs.
Key Terms
• Individual: It means an individual decision making 
unit, it can be a person or a group like a household, a 
firm etc.
• Resource: It means those goods and services which 
are used to produce other goods and services. For 
instance, land, labour, tools and machinery. Etc.
Meaning of Economics
• Economics is concerned with the study 
of economic problems that arise 
because human wants are unlimited 
and resources to satisfy those wants 
and limited or scarce and these scarce 
resources have alternative uses.
• Economics focuses on the rational 
management of scarce resources in 
order to maximize economic welfare. 
Hence, economics is about making 
choices in the backdrop of scarcity.