NTS NAT-ICOM Economics Syllabus

Economics syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Economics in NTS NAT-ICOM, not a summary of it.

1. 1

   Introduction to Economics

   4 topics

   • Definitions and Scope of Economics
   • Basic Economic Problems
   • Micro and Macro Economics
   • Wants and Their Characteristics
2. 2

   Consumer Behaviour

   3 topics

   • Utility Analysis
   • Indifference Curve Analysis
   • Consumer Equilibrium
3. 3

   Demand and Supply

   4 topics

   • Law of Demand
   • Law of Supply
   • Elasticity of Demand
   • Market Equilibrium
4. 4

   Production and Cost

   4 topics

   • Factors of Production
   • Law of Diminishing Returns
   • Cost and Revenue Concepts
   • Economies of Scale
5. 5

   National Income and Money

   4 topics

   • Concepts of National Income
   • Money and Its Functions
   • Inflation
   • Banking and Central Bank
6. 6

   Pakistan Economy

   4 topics

   • Agriculture Sector
   • Industrial Sector
   • Public Finance and Taxation
   • Economic Planning

Economics flashcards for NTS NAT-ICOM

23 of 50 cards from the Economics deck — real questions with worked answers.

1. How is Economics defined according to Lionel Robbins' scarcity definition?

   Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.

2. Who defined Economics as 'a study of mankind in the ordinary business of life'?

   Alfred Marshall (welfare definition of Economics).

3. What is the scope of Economics traditionally divided into?

   Microeconomics (study of individual units) and Macroeconomics (study of the economy as a whole).

4. What are the two main branches of economic study based on what 'is' versus what 'ought to be'?

   Positive Economics (what is — factual statements) and Normative Economics (what ought to be — value judgments).

5. What is the central/fundamental economic problem that all societies face?

   Scarcity of resources relative to unlimited human wants, which forces choice.

6. What are the three basic economic problems (questions) every economy must answer?

   What to produce, how to produce, and for whom to produce.

7. What is meant by 'opportunity cost' in economics?

   The value of the next best alternative foregone when a choice is made.

8. What curve illustrates the maximum combinations of two goods an economy can produce with full use of resources?

   The Production Possibility Curve (PPC), also called the Production Possibility Frontier (PPF).

9. Why is the Production Possibility Curve typically concave to the origin?

   Because of increasing opportunity cost — resources are not equally efficient in producing both goods.

10. What does a point inside the Production Possibility Curve indicate?

    Underutilization or inefficient use of resources (unemployed resources).

11. What is Microeconomics?

    The branch of economics that studies the behavior of individual units such as a single consumer, firm, household, or market, including price determination of individual goods.

12. What is Macroeconomics?

    The branch of economics that studies the economy as a whole, dealing with aggregates such as national income, total employment, general price level, and inflation.

13. Microeconomics is also known by what alternative name, and why?

    Price Theory, because it focuses on the determination of prices of individual goods and factors.

14. Macroeconomics is also known by what alternative name?

    Income Theory (or Theory of Income and Employment).

15. What is a 'want' in economics?

    A desire or wish to possess a good or service, backed by the ability and willingness to pay (effective demand).

16. What are the main characteristics of human wants?

    Wants are unlimited, a single want is satiable, wants are recurring, complementary, competitive, vary with time/place/person, and become habitual.

17. How are wants classified into three types?

    Necessaries (essential for survival), Comforts (make life easier), and Luxuries (expensive items for prestige/pleasure).

18. What does 'wants are unlimited but a single want is satiable' mean?

    Human wants in total are endless, but any one particular want can be fully satisfied at a given time.

19. What is Utility in economics?

    The power or capacity of a good or service to satisfy a human want.

20. What is Total Utility (TU)?

    The total satisfaction obtained from consuming a given quantity of a commodity.

21. What is Marginal Utility (MU)?

    The additional utility derived from consuming one more unit of a commodity. MU = change in TU / change in quantity (ΔTU/ΔQ).

22. State the Law of Diminishing Marginal Utility.

    As a consumer consumes more units of a commodity, the marginal utility derived from each successive unit goes on decreasing.

23. What is the relationship between Total Utility and Marginal Utility at the point of saturation?

    Total Utility is maximum when Marginal Utility is zero; beyond this, MU becomes negative and TU starts to fall.

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