Economics Assignment: Ratio Scale, Indifference Curve and Analysis

This assignment delves into core economic concepts. It begins by defining economics and its focus on the allocation of scarce resources. The main body explores the ratio scale, a quantitative measurement tool, highlighting its advantages (e.g., a true zero point enabling ratio calculations) and disadvantages (e.g., limitations in applicability, historical focus). The assignment then transitions to indifference curves, likely using a graphical representation to illustrate consumer preferences and Pareto efficiency. This assignment is aimed to help students understand the basics of economics.

Introduce to economics

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART A.......................................................................................................................................1
2. ..................................................................................................................................................1

INTRODUCTION
Economics is social science that deals with production, distribution and consumption of
goods and services and studied action of human beings that is based on rational behaviours. This
is important part that how things that allocate scare resources effectively.
MAIN BODY
PART A
2.
Ratio scale is type of variable measurement that used in quantitate nature and facilitate
the researcher to compare the intervals and it is 4th level of measurement and posses a zero point
character of origin.
Some of advantages of ratio scale are as follows-
 It is point zero characteristics, where there is no value of variable and weight, height can
be calculated on ration scale as they have real zero value.
 It is essential characteristics to measure ratio between two variable as there id absence of
zero is no ratio. Its is used to calculated all scientific variables.
Some of disadvantages are as follows-
 It is used for historic analysis and not current value that makes it unsuitable to apply.
 It does not able to apply all numerical value and variable that makes it ineffective.
 It is not easy to use as it required certain knowledge to apply and difficult to understand
at the same time.
1

PART B
5.
2
Angela’s best feasible indifference
curve when an independent farmer
IC0
Angela’s reservation
indifference curve, IC2
D
2416
16
8
12
0
0
‘Pareto Efficiency
Curve’
Bushels of grain
Angela’s hours of time