Question

6. What is the Economizing Problem?

7. What is subjective valuation?

8. Name the three schools of economic thought.

9. Is economics a science like physics or math? Why or why not.

Answer 1

6. Economizing problems are the basic problems of economics. As the society is increasing, their needs are increasing as well which are creating many problems. These problems include :-

a. Scarcity of resources

b. Unlimited wants because everyone wants more and resources are very limited.

c. Income and consumption expenditure

d. Limited supply

7. Subjective valuation is aa theory which states that an object's value can have more value to others depending on their desire and needs.In this theory, the value of a particular object could be increased by transferring the ownership due to situational needs, non- availability of object.

For example:- If it is raining outside and you have to go for an urgent meeting then you will need an umbrella and it will the most important thing for you more than a diamond necklace but if the rain stops, the value will decrease instantly. This is how value of a object is based on your need and desire

8.The three economic school of thought are:-

a. Classical school - contribution by Adam Smith, Manchester etc.

b. Neo classical school - contribution by Anglo American, Alfred Marshall etc

c. Keynesians - contribution by John Maynard Keynesian

9. Economics is regarded as social science but infact it could be said science also like physics and Maths.

Science is a way of thinking, it understands human behaviour. Science believes in experimental factor that is done by collecting hypothesis abd concluding the result. Economic experiment cannnot be done in the laboratory to prove a point like science but it also do hypothesis to collect data and then interpret the result. It shows qualitative and quantitative elements of goods and services and shows how to allocate them.

Hence, economic could be regarded aa science.