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Economics

Economics. Economics term comes from the Ancient Greek oikonomia which means “management of a household administration”. It is applied in major facets of society business, finance and government, health, family, politics. Two well known dimensions of economics are:

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Economics

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  1. Economics • Economics term comes from the Ancient Greek oikonomiawhich means “management of a household administration”. • It is applied in major facets of society business, finance and government, health, family, politics. • Two well known dimensions of economics are: • Positive Economics: describing “what is”. • Normative Economics: describing “what ought to be”. • Some very common and interesting terms : Opportunity costs, Choices, Resources, Economies of scale, Income, Investment, Output, Externalities, Demand and Supply.

  2. What is an Economy? • “A total system comprising farms, factories, mines, shops, roads, railways, offices, schools, colleges, hospitals etc., are all looked upon as growing institutions which provide various types of goods and services to people. This is called an economy.” By Prof. A.J.Brown

  3. Economics • Question confronting each of us today as ‘Global Citizens’ are: • Why do we describe ourselves as Masters of Nature? • What are we doing to protect our Eco system? • Why do we identify “Choice” as Consumerism? • What is drawing all of us towards the Human myth-Limitless Expansion? • Do we realize the end of Human race is near thanks to Climate change?

  4. Economics • Question confronting each of us today as ‘Global Citizens’ are: • Can we change the basic mantra of life from “Well having” to “Well being”? • Do we realize that we are floating in metallic connected Universe, disconnected from the sources of the Earth? • Do we realize that “Resources” (any form) is for balancing our existent on Mother Earth?

  5. Is Economics Science or Art? (Nature of Economics) • Is Economics Science or Art or both.doc (Right Click to open the hyperlink)

  6. Famous Economists & their contributions………………………….

  7. Neo-Classical Economists • Adam Smith (1723-1790) • David Ricardo (1772-1823) • Jean-Baptiste Say (1776-1832) • Irving Fischer (1867-1947)

  8. Keynesian Economists • John Maynard Keynes (1883 to 1946) • Ray Forbes Harrod (1900 to 1978) • Sir John Richard Hicks ( 1904 to 1989)

  9. Monetarist Economists • Friedrich August von Hayek (1899 to 1992) • Milton Friedman (1912 to -)

  10. Definitions of Economics • Wealth Definition- By Adam Smith • Welfare Definition- By Marshall • Scarcity Definition- By Robbins • Growth Oriented Definition- By Samuelson

  11. Wealth Definition by Adam Smith • A science which enquires into the nature and causes of wealth of Nations. • Wealthier a nation the happier are its citizens.

  12. Welfare Definition by Alfred Marshall • Political economy or Economics is a study of mankindin the ordinary business of life; it examines that part of individual and social action which is most closelyconnected with the attainment and with the use of the material requisites of well- being. Thus, it is, on the one side, a study of wealth and on the other hand more important side, a part of the study of man.

  13. Scarcity Definition by Professor Lionel Robbins • Economics is the science which studies human behaviour as a relationshipbetween ends and scarce means which have alternative uses.

  14. Growth-Oriented definition by Professor Samuelson • Economics is the use of how people and society choose, with or without the use of money, to employ the scarce productiveresources, which have alternative uses, to produce various commodities over time and distribute them for consumption nowor in the future among various people and groups in society.

  15. Definition by Lord John Maynard Keynes • “Economics is a study of administration of a scarce means and the determinants of employment and income”.

  16. Two Major Branches of Economics • Micro Economics: Studies the Economic Behaviour of Individual economic units and Individual economic variables. -Example Individual consumer and his income among various products and services so as to maximise utility. -Example Individual firms and Industries and how they determine the prices of their products and services.

  17. Two Major Branches of Economics • Macro economics deals with the functioning of the economy as a whole. -Aggregate demand and supply -Unemployment -Poverty -Inflation -National Income -Aggregate Consumption. -Savings and Investment -Economic Growth and Development

  18. Positive Science • Positive economics is concerned with the facts about the economy. It relates to what the facts are, were or will be about various economic phenomena in the economy

  19. Normative Science • Normative Economics is concerned with what ‘ought to be’. It involves ‘value judgement’. Deals primarily with economic goals of a society and policies to achieve these goal

  20. Deductive and Inductive methods • Economics theories are not accurate, exact, precise and universal; they are conditional subject to the condition that other things are equal.

  21. Resources • Frank ISC Economics-Sethi and Andrews-Frank Publications-Grade XIth. • Economics Applications by Nigam and Banerjee- Oswal Printers and Publishers-Grade IXth. • Elemantary Economic Applications-Mazumdar-ABS Publishing house-Grade IXth. • Economics a complete course by Dan Moynihan and Brian Titley

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