Economics

Economics is the study of how people make choices under conditions of scarcity. Scarcity means that there are not enough resources to meet all our wants and needs. Economics helps us to understand how people decide how to use their limited resources to get the things they want and need.

  • Economics is the study of how people make choices under conditions of scarcity.

    This means that there are not enough resources to produce everything that people want, so people have to make decisions about how to use their limited resources.

  • Economics is a social science.

    This means that it is a study of human behavior, and it uses methods from other social sciences, such as sociology, psychology, and political science.

  • Economics is a quantitative science.

    This means that it uses mathematical models and statistical analysis to study economic phenomena.

Various Aspects of Economics

  • Microeconomics

    is the study of individual decision-making and how these decisions interact to form markets and economies.

  • Macroeconomics

    is the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.

  • International economics

    is the study of trade, finance, and investment between countries.

  • Development economics

    is the study of economic growth and development in low-income countries.

  • Public economics

    is the study of the government’s role in the economy, including topics such as taxation, government spending, and regulation.

Key Concepts in Economics

  • Supply and demand

    Supply is the amount of a good or service that producers are willing to sell at a given price. Demand is the amount of a good or service that consumers are willing to buy at a given price. The price of a good or service is determined by the intersection of supply and demand.

  • Market equilibrium

    Market equilibrium is the point at which supply and demand are equal. At market equilibrium, the price of a good or service is neither too high nor too low.

  • Invisible hand

    The invisible hand is a metaphor for the way that the market economy works. It is the idea that individuals acting in their own self-interest can lead to the best outcome for society.

  • Marginal benefit

    Marginal benefit is the additional benefit that we receive from consuming one more unit of a good or service.

  • Marginal cost

    Marginal cost is the additional cost that we incur from producing one more unit of a good or service.

  • Efficiency:

    Efficiency is the situation in which we are getting the most out of our resources.

  • Inefficiency:

    Inefficiency is the situation in which we are not getting the most out of our resources.

Economics is a complex subject, but it is also an extremely rewarding one. By understanding economics, we can better understand the world around us and make better decisions about our lives.

Kinds of Elasticity of Demand

Classification of Elasticity The Elasticity of Demand could be of 3 types based on the factor which affects the change in the demand for a commodity. Price Elasticity of Demand Income Elasticity of Demand Cross Elasticity of Demand Measurement of the Elasticity Total Outlay Method Proportionate or Percentage Method Point Method or Geometrical Method

Macro Economics – Importance and Limitations

Meaning of Macro Economics The word macro means big. Thus, in Macro Economics, either the whole economy is studied or those big units which are related to the economy as a whole. Definition In the words of Prof. Boulding Macro Economics deals not with individual quantities as such but aggregates of these quantities, not with individual …

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Micro Economics – Importance and Limitations

Introduction to Micro Economics In the present times, the study of economics is done from two viewpoints namely Micro and Macro. From the first viewpoint, the economic problems of various units, like – individuals, families, firms etc. are studied individually, whereas; from the second viewpoint, the same units of persons, families, firms etc., are studied in …

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