Presented by- Susmita Paul Type your text Monetary transactions. Internal trade as well as export-import trade. Types of tax, collects revenue, spends money for implementing different projects, prepares the budget every year. Earns money income, spends money for satisfying his/her wants, saves money for future purposes etc. Investment plan, collects necessary fund from different sources Meaning of Economics The word Economics' originates from the Greek word ‘Oikonomikos’ (a) ‘Oikos’, which means ‘Home’, and (b) ‘Nomos’, which means ‘Management’. Thus, Economics means ‘Home Management’ Adam Smith, Known as ‘Father of Economics’ Book name- ‘An Enquiry into the Nature and Causes Wealth of Nation’, 1776. (1) Unlimited human wants, (2) Limited availability of resources to satisfy those wants, and (3) Fulfilment of unlimited wants with limited resources. Scarcity of resources: ‘want is a desire to acquire something with the willingness to put in an effort to acquire it.’ (a) What should be produced and in what quantity? (b) How these goods should be produced? (c) For whom these goods should be produced? 1. Economics is concerned about Production Def- Production is a social activity whose principal purpose is to change one state of matter into another. For example- a carpenter prepares wooden furniture from wooden logs. Inputs- wooden logs Outputs- wooden furniture The goods and services with the help of which the process of production is carried out are called Factors of Production. 2. Economics is concerned about Distribution Def- Distribution is the allocation of total product among members of the society. 3. Economics is concerned about Consumption Def- Consumption is the use of goods and service. Consumption is the ultimate end of economic activity. When there is no consumption there will be no production and distribution also. 4. Economics is concerned about Public Finance Def- Public finance is concerned with government expenditures and revenues. To study about how government raises money through taxation and borrowings. Economics Micro Economics Macro Economics Micro Economics- the behaviour of individual economic Macro Economics- an understanding of the economy agents in the markets for different goods and services and try to figure out how prices and quantities of goods and services are determined through the interaction of individuals in these markets. Examples- demand, supply, factor pricing. as a whole by focusing our attention on aggregate measures such as total output, employment and aggregate price level. Economics-Economics is the science and art of decision Economy- When a country or a geographical region is defined making, regarding the use of scarce resources, under the conditions of scarcity, to attain maximum satisfaction. in the context of its economic activities, it is known as economy or economic system. 1.Market Economy/ Capitalism It is the economic system where all sorts of economic problems are automatically solved through market mechanisms of supply and demand. Capitalism or capitalist economy is referred to as the economic system where the factors of production such as capital goods, labour, natural resources, and entrepreneurship are controlled and regulated by private businesses. FeaturesPrivate property Freedom of enterprise Profit motive Price mechanism The first and the most famous work in this direction was by the Scottish philosopher economist, Adam Smith in ‘The Wealth of Nations’(1776). 2.Socialist Economy-If all the economic problems are corrected through economic planning undertaken by the government, then that economic system is called centrally planned economy or Socialist Economy . FeaturesWorking class assumes the political power Restrictions on economic liberty Absence of market mechanism Absence of right to property 3.Mixed Economy-There is a type of economy which neither capitalistic nor socialistic in nature but coexist of both. Features- Partial restriction on individual liberty. Co-existence of private and public sector. Tries to maximize return of Economic activities in which its in involved. In Primary sector of economy, activities are undertaken by directly using natural resources. Agriculture, Mining, Fishing, Forestry, Dairy etc. are some examples of this sector. It is called so because it forms the base for all other products. Since most of the natural products we get are from agriculture, dairy, forestry, fishing, it is also called Agriculture and allied sector. People engaged in primary activities are called red-collar workers due to the outdoor nature of their work. It includes the industries where finished products are made from natural materials produced in the primary sector. Industrial production, cotton fabric, sugar cane production etc. activities comes under this sector. Hence its the part of a country's economy that manufactures goods, rather than producing raw materials. Since this sector is associated with different kinds of industries, it is also called industrial sector. People engaged in secondary activities are called blue collar workers. This sector’s activities help in the development of the primary and secondary sectors. By itself, economic activities in tertiary sector do not produce a goods but they are an aid or a support for the production. Goods transported by trucks or trains, banking, insurance, finance etc. come under the sector. It provides the value addition to a product same as secondary sector. This sector jobs are called white collar jobs. Pink-collar worker is one who is employed in a job that is traditionally considered to be women's work. The term pink-collar worker was used to distinguish female-orientated jobs from the blue-collar worker, a worker in manual labor, and the white-collar worker, a professional or educated worker in office positions. A pink collar worker need not require as much professional training as white-collar professions. They do not get equal pay or prestige. A pink collar worker is usually a woman. Men rarely work in pink collar jobs. Some examples of pink collar occupations are baby sitter, florist, day care worker, nurses etc. Lately, the pink collar worker is educated or trained. Pink collar workers are educated through training seminars or classes and they have to continue to strive for advancement in their careers. Thank You The most fundamental economic problem is A) security. B) the fact the United States buys more goods from foreigners than we sell to foreigners. C) health. D) Scarcity Answer- D Economics is best defined as the study of how people, businesses, governments, and societies A) make choices to cope with scarcity. B) attain wealth. C) choose abundance over scarcity. D) use their infinite resources. Answer- A Which of the following is a microeconomic topic? A) the reasons for a decline in average prices B) the reasons why Kathy buys less orange juice C) the cause of why total employment may decrease D) the effect of the government budget deficit on inflation Answer- B Studying the determination of prices in individual markets is primarily a concern of A) negative economics. B) microeconomics. C) positive economics. D) macroeconomics Answer- B Which of the following is an issue in macroeconomics? A) the purchasing decisions that an individual consumer makes B) the effect of an increase in the tax on cigarettes on cigarette sales C) the hiring decisions that a business makes D) the effect of increasing the money supply on inflation Answer- D Entrepreneurs do all of the following EXCEPT A) bear risk from business decisions. B) own all the other resources. C) come up with new ideas about what, how, when and where to produce. D) organize labor, land, and capital Answer- B To answer the "for whom" question, we study A) business cycles. B) technological change. C) the global economy. D) income differences Answer- D The opportunity cost of any action is A) the time required but not the monetary cost. B) all the possible alternatives forgone. C) the highest-valued alternative forgone. D) the monetary cost but not the time required. Answer- C
