Definitions of Ten Different Authors of Economic

NAME SHAFIQ-UR-REHMAN
CLASS MBA (3.5) 2ND SEMESTER
SUBJECT ECONOMIC
TEACHER QURAT-ULL-AIN
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Saturday, April 14, 2018
Definitions of ten different authors of economic .
1. According to Smith:
“The great object of the Political Economy of every country is to increase the riches and
power of that country.”
2. According to Marshall's :
“Political Economy or Economics is a study of mankind in the ordinary business of life; it
examines that part of individual and social action which is most closely connected with
the attainment and with the use of the material requisites of well-being.”
3. Lionel Robbins say:
"Economics is the science which studies human behavior as a relationship between
ends and scarce means which have alternative uses."
4. Jean-Baptiste :
“it as the science of production, distribution, and consumption of wealth.”
5. Ahmedul:
“The branch of knowledge concerned with the production, consumption, and transfer
of wealth.The condition of a region or group as regards material prosperity.”
6. Marshal:
"Economics is the study of people in the ordinary business of life."
7. Paul A. Samuelson
Economics is the "study of how societies use scarce resources to produce valuable
commodities and distribute them among different people."
8. Mark Blaug:
defines economics is the branch of social science that deals with the production and
distribution and consumption of goods and services and their management
9. John Stuart Mill:
The science which traces the laws of such of the phenomena of society as arise from the
combined operations of mankind for the production of wealth, in so far as those
phenomena are not modified by the pursuit of any other object
10. Alfred Marshall:
Economics is a study of man in the ordinary business of life. It enquires how he gets his
income and how he uses it. Thus, it is on the one side, the study of wealth and on the
other and more important side, a part of the study of man.
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MACROECONOMICS AND MICROECONOMICS - TOP FIVE POINTS
MACROECONOMICS MICROECONOMICS
The branch of economics that studies the The branch of economics that studies the
behavior of an individual consumer, firm, behavior of the whole economy, (both national
family is known as Microeconomics. and international) is known as
Macroeconomics
Deals with Individual economic variables Deals with Aggregate economic variables
Applied to operational or internal issues Environment and external issues
Covers various issues like demand, supply, Covers various issues like, national income,
product pricing, factor pricing, production, general price level, distribution, employment,
consumption, economic welfare, etc. money etc.
Helpful in determining the prices of a product Maintains stability in the general price level
along with the prices of factors of production and resolves the major problems of the
(land, labor, capital, entrepreneur etc.) within economy like inflation, deflation, reflation,
the economy. unemployment and poverty as a whole.
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Automobile (Honda)
Ten question:
1. How can we explain what underlies consumer behavior?
Price
Quality
Quantity
Provision of after sales services (Customer service) display etc.
2. What factors affect consumer demand for goods and services?

Price
Quality
Quantity
Sale services
Purchasing power
3. How do consumers respond to price signals?

a) Profit maximization. One strategy is to ignore market share and try to work out the price for
profit maximization. In theory, this occurs at a price where MR=MC. In practice, it can be
difficult to work this out precisely.
b) Sales maximization. Aiming to maximize sales whilst making normal profit. This involves
selling at a price equal to average cost.
c) If the demand gets higher, then supply get low and price get higher.
d) If the demand gets low, then supply get higher and price get low.
4. To what extent is a person’s demand influenced by changes in income or in the prices of

competitive products?
There are of course other factors, besides price changes that influences an individual’s
quantity demanded. These other factors are usually within the model of demand and supply
given less weight than price. These other factors are held constant (Ceteris Paribus) to arrive
at an equilibrium price level. These factors include; first, prices of other products, both
complements and substitutes.
5. How do firms organize themselves to meet consumer demands?
Private Publicity
Profit Service
Maximization Provision
a) Archived
b)Felling
c) Bring innovation in cars
6. What factors influence a firm’s behavior?

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Porter's five forces
a) Threat of new entrants
b) Threat of substitutes
c) Bargaining power of customers
d) Bargaining power of suppliers
e) Industry rivalry
7. What is the relationship between a firm’s output, its cost and its profitability?
Output (Adversary) Cost per unit (Adversary) Profitability
Economics of scale
8. How do firms decide on their pricing strategy?
a) Competition = competitive = some as competitor

= Intense = penetration
b) Product
c) Place
9. To what degree does the structure of the market in which a firm operates affect its conduct
and performance?
a) Threat of new entrants
b) Threat of substitutes
c) Bargaining power of customers
d) Bargaining power of suppliers
e) Industry rivalry
10. How far can a firm influence the degree of competition in the marketplace?
Competition can be influenced by Nine factors
a) Brand loyalty
b) Customer service
c) Product Quality
d) Price
e) product features
f) the number of sellers
g) barriers to entry
h) information availability
i) location
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NAME SHAFIQ-UR-REHMAN

CLASS MBA (3.5) 2ND SEMESTER

Applied to operational or internal issues Environment and external issues

2. What factors affect consumer demand for goods and services?

3. How do consumers respond to price signals?

4. To what extent is a person’s demand influenced by changes in income or in the prices of

5. How do firms organize themselves to meet consumer demands?

6. What factors influence a firm’s behavior?

8. How do firms decide on their pricing strategy?

a) Competition = competitive = some as competitor

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