Question

1. Describe the components of Input Markets

2. Describe Industrial Revolution.

3. With diagrams illustrate Time series graphs and its applications

4. Explain Economics and the theories in economics?

5. What is opportunity cost and sunk cost?

Answer 1

Answer - Components of input market-

Four major components of input market are - Land , Labour , capital and entrepreneur

Land- It has limited supply and it does not include only land but it includes everything that comes from land. The income that owner of land gets for its services is called rent.

Labour- It is the effort that people contribute to the production of goods and services. The income earned by labor for its services is called wages and it is the highest income earn by the human being.

Capital. It includes investment in machinery and buildings. It is essential to start up the business. Interest is paid for making use of the capital.

Entrepreneur- He is the person who runs an organization by bearing risk and uncertainty. He is the one who invest his capital to have profit for the organization. Entrepreneur is paid profit for ots services. It is the factor that can enhance gross domestic production of nation.

answer -2) Industrial revolution- It is also called first Industrial revolution. In Europe and United States in between 1820-1840 it was conversion in new manufacturing process. Due to the industrial revolution production from small shops shifted to the large factories. Due to it goods could be produced with help of machinery in factories with less time and of good quality.

Answer-4) Economics- It is a Greek work Derived from two word Oikos and Nemein considered as household management. Now, economics has vast area. It is the study of economic activities of human being that he performs to satisfy his needs with the help of limited resources which have alternate uses.

Theories of economics- Many of theories are concerned with economics - Theories of macroeconomics are- Monetary policy , Keynes theory of income , output and employment, Big push theory and Fisherman theory of quantity.

Answer 5) Opportunity Cost- It is an economic concept. It is the cost of next best alternative. it is the cost of producing one unit of commodity X is the amount of commodity Y that is essential to sacrifice in order to produce good X for Good Y to produce same level of output.

Sunk cost- It is the cost that has incurred in production at initial level and cannot be recovered.