Ans. (i) To Study Consumer Behaviour – The theory of consumer behaviour in Economics deals with the study of consumer behaviour in various types of market situations. This theory explains how a rational consumer makes decisions in order to obtain the greatest amount of satisfaction for the least amount of money and at the lowest possible price for goods and services.
(ii) To Study Production Theory – Production theory is the study of producers’ production decisions in various types of markets. The theory explains how a producer makes production decisions that are related to maximising output at a given cost or minimising cost at a given level of output.
(iii) To Understand Income Distribution – The study of Economics teaches us about the distribution of national income. In other words, it describes how the income generated by total production in an economy is distributed to different factor owners in the form of wage, rent, interest, and profit (like labour, land, capital and entrepreneur).
(iv) Investigating an Economy’s Macroeconomic Issues – Economics proves to be the most powerful tool for understanding and analysing the root causes of an economy’s basic macroeconomic problems such as poverty, unemployment, inflation, recession, and so on. Economics assists us not only in understanding the interdependence of these problems, but also in implementing various corrective measures.