1.

Production
it refers to creation of wealth
sticrtly speaing it refers to creation of utilties
production refers to all activities which undertaken to produce goods which satisfies human wants

2.consumption
it deals with satisfacation of human wants there is economic activity in the wold becoz of wants
when your wants are satisfied it is known as consumption

3.exchange
in exchange we give one thing and tae another
the goods are exchanged for goods or for money
if goods are exchanged for goods it call as barter
the modern economy is money economy so the goods exchanged for money

4.distribution
the wealth is produced by the contribution of land labour capital and organisation
and it is distributed in the form of rent wages interest profit

5.public finance
it deals with ecnomics of govt.
It studies mainly about income and expenditure

6.econometrics
economics is related to statastics and mathematics . Statistics is the science of average and counting
the diagrams and tables uesd in economics are based on statastics
the mathematical methods are largely used in modern economics
now we have science called econometrics and it i ae use of statastics and mathematics in economics

7.adam smith definition and critisisms----

adam smith defintion
eonomics is the science of wealth
citisisms
> in economic wealth means scare goods which satisfies the human wants not only money but in
modern economics wealth means welfare
>economics is a socila science in which proper study of mankind should be there not wealth aloe
>the large investment of capital and use of large of machinery is enable to produce large of wealth
> so adam smith empazished the wealth and considered wealth as an “enquiry into yhe nature and
causes of wealth of nations .

8. ends are various the term ends means wants. Human wants are unlimited
menas are limited . For eg. Money ,time etc.
We can put money and time for alternative uses for eg. Time is limited but we can use for
different purposes
all wants are not equal importance

9. there is no need to as question wheather economics is postive science or normative science .

instead we may loo at to subjects that as two parts
positive economics
boby of systemizied knowledge concering what is it
mainly concered with the description of economics and actual situation
formalates theories to explain them

nomartive science
criteria to develop whatought to be
concened with ideal situations
imp. To ethical jugdements

10.identification of problem
collection of hypothesis
colloction,organisation and analysis of data
formation os conclusion
verification , rejection or modification of hypothesis after testing it.