Introduction to Economics
(Very Short Question Answers)
Q1: What is an Economy?
Answer: An economy is the system of earning livelihood. It is the sum of the basic economic activities
viz.
✒ Production,
✒ Consumption and
✒ Distribution or Distribution (Exchange).
Q2: What is an Economic Problem?
Answer: An economic problem is the problem of making choice of the given resources which have alternative uses. In other words, it is the decision making problem of husbandry of resources.
Q3: Define the term Production Possibility Curve.






