www.universeofcommerce.

com Shrishty Agarwal

Business Economics CA Foundation

Names of People & Theories / Concepts given by them:

Economics is a science which deals with wealth - JB SAY

"Economics is what economics do" - JACOB VINER

Who said "economics is a science" - LIONEL ROBBINS

"Economics is a science of choice" - LIONEL ROBBINS
Economics is "neutral between ends" - LIONEL ROBBINS
SCARCITY definition of Economics - LIONEL ROBBINS
Economics as a study of dynamic growth and development - LIONEL ROBBINS
Book written - "Nature & significance of economics" - LIONEL ROBBINS

Father of modern economics - ADAM SMITH

Wealth definition of Economics - ADAM SMITH
Book written - "An enquiry into the nature & causes of wealth of nations" - ADAM SMITH

Concept of Socialistic economy - KARL MARX & FREDERICK ENGELS

The DELPHI TECHNIQUE of Demand Forecasting is developed by OLAF HELMER

Welfare definition of Economics -ALFRED MARSHAL

Concept of Normative Science - ALFRED MARSHALL
Cardinal approach / Marginal utility analysis - ALFRED MARSHALL
CONSUMER SURPLUS - ALFRED MARSHALL
“Time Element” for classification of Markets - ALFRED MARSHALL
Law of DMU - ALFRED MARSHALL

Giffen goods - SIR ROBERT GIFFEN

JAMES BATES AND J.R. PARKINSON “Production is the organized activity of transforming
resources into finished products in the form of goods and services; and the objective of
production is to satisfy the demand of such transformed resources”.

Defines OLIGOPOLY as that “situation in which a firm bases its market policy, in part, on the
expected behaviour of a few close rivals” – Prof. STIGLER
Monopolistic competition theory - CHAMBERLIN
Distinction between selling cost & production cost - CHAMBERLIN

1 All Past Year MTPs / RTPs / Question Papers (with Answer Keys) available on our website
(FREE) – www.universeofcommerce.com
www.universeofcommerce.com Shrishty Agarwal

Business Economics CA Foundation

Names of People & Theories / Concepts given by them:

Demonstration Effect - JAMES DUESENBERRY

Veblen Effect / Prestige Goods Effect / THEORY of CONSPICUOUS CONSUMPTION - THORSTEIN
VEBLEN

Substitution Effect - Hicks & Allen

Ordinal Approach / IC Analysis - Hicks & Allen

Cobb Douglas Production function – CW Cobb & Paul H Douglas

Innovation is the true function of an entrepreneur – SCHUMPETER

Sweezy’s model / Kinked demand curve – Paul A. Sweezy.

Fluctuations in economic activities are due to fluctuations in aggregate effective demand –

KEYNES
Trade Cycle is a purely monetary phenomenon. – HAWTREY
Modern Business activities are based on the anticipations of business community and are
affected by waves of optimism or pessimism – PIGOU
3 Degrees of price discrimination (MONOPOLY) - PIGOU
Trade cycles occur as a result of innovations which take place in the system from time to time /
trade cycles occur due to onset of innovations - SCHUMPETER

2 All Past Year MTPs / RTPs / Question Papers (with Answer Keys) available on our website
(FREE) – www.universeofcommerce.com