ASSIGNMENT-1

BUILDING ECONOMICS

SUBMITTED TO
AR. MEGHNA VIJ

SUBMITTED BY
D.L.PRIYAMADA
ENR NO: A51404018001
B.ARCH, 8TH SEM

DATE OF SUBMISSION: - 03/02/2022

Topic: ELEMENTARY CONCEPTS OF ECONOMICS

Q.1) What is Economics? 

Economics  efficient use of limited productive resources to achieve maximum satisfaction
of human materials wants…

What is wants and needs difference!!!!!!

Q.2) Difference between needs and wants.
Need  requirements to survive (food, clothes, shelter)
Ex: - Food is a need...
Want  desires of an individual even if it is not necessary…
Ex: - Chicken biryani is want...

Q.3) Enlist the differences between micro and macroeconomics?

Microeconomics  Studies about incentives and decisions (individual unit)… specifically
abt how those affect the utilization and distribution of resources….
 They show how and why diff goods have diff prices,
 How individuals and businesses conduct and benefit from efficient production and
exchange and also how they are cooperate with each other…
Ex: - individual income of person
Macroeconomics  Studies about overall economy… specifically deals with structure,
performance, behavior, and decision making of the whole economy or aggregate….
 Phenomena such as inflation, price levels, rate of economic growth, national income,
GDP (gross domestic product) and changes in unemployment.
 Two types... long term and short term cycles
Ex: - national income...

Q.4) What do you mean by scarcity of resources in economics? How can a society deal
with this, explain…
Scarcity means that the demand for a good or service is greater than the availability of the
goods or services…
 According to scarcity principle, the price of a good, which has low supply and high
demand, rises to meet the expected demand.
What is demand and supply.
 Demand  it is a schedule which shows the various amount of a product, consumers
are willing and able to purchase during a specified period of time.

1
Topic: ELEMENTARY CONCEPTS OF ECONOMICS

Law of Demand says that “As price falls, the quantity demanded rises, or other things
being equal, as price increases, the corresponding quantity demanded falls.”
 Supply  which shows the amounts of a product, a producer is willing and able to
produce and make available for sale during a specified period.
Law of supply says that “As price rises, the corresponding quantity supplied rises, as
price falls, the quantity supplied also falls.”
There are three ways any society can deal with scarcity by three ways and they are economic
growth, reduce our wants, and using our existing resources wisely.

Q.5) What is utility in economics? What are the different types of utility? Compare
cardinal and ordinal utility…
Utility means pleasure or satisfaction obtained from a goods or services.
 5 types of economic utility are there… time utility, form utility, place utility,
information utility and possession utility.
Ex: - ability of getting satisfied after having yummy biryani!!
Marginal utility is the additional satisfaction that a consumer gets from having one more
unit of a good or service.
 Positive marginal utility… consumption of an additional item increases the total
utility.
 Negative marginal utility… consumption of an additional item decreases the total
utility.
Total utility is often compared to marginal utility and its nothing but “the aggregate amount
of satisfaction or fulfilment that a consumer receives through the consumption of a specific
good or service.”
Cardinal utility: It explains that the satisfaction level after consuming any goods or services
can be scaled in terms of countable numbers.
Ordinal utility: It explains that the satisfaction level after consuming any goods or services
cannot be scaled in numbers.