Microsoft PowerPoint - Basic Terms and Concepts of ECONOMICS - gupta

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Basic Terms and concepTs of economics BY:- INDRANIL SIR NEXT PAGE FOLLOWED My referral code--- USE MY REFERRAL CODE TO GET 10% DISCOUNT INDRANILSIRLIVE ABOUT ECONOMICS :- The study of production and distribution of wealth is known as --------- Economics It is a branch of social science that deals with the production, distribution and consumption of goods and services. Social science is a branch of science that deals with the institutions and functioning of human society or forms of social activity. It is the mixture of Science and Arts. Sociology, Anthropology, Political Science, Management, Economics etc are examples of Social Science subjects. Economics is a science of scarcity was first stated by the Noted Economist Ms. Lionel Robbins. The term ‘Economics’ was derived originally from the Greek word ‘Oikonomia’ which means Household Management. Economy is a system where every economic activities take place. It can be said that a legal and institutional framework. Economics can be classified as Micro Economics and Macro Economics. • The study of the individual behaviour such as demand, supply, cost, revenue etc is known as Micro Economics. • Theory of Demand and Supply, Theory of Firm, Theory of Production and Cost, Theory of Consumer, Theory of Distribution, Perfect Competition etc fall within the purview of Micro Economics. • Microeconomics is also known as Price Theory. • The Noted Economist Mr. Ragner Friesch first used the terms ‘micro’ and ‘macro’ in Economics. • The study of the functioning of an economy as a whole is known as ------ Macro Economics. • Aspects of Macroeconomics are ------ Theory of Income, Theory of Employment, Theory of General Price Level, Inflation etc. • It is concerned with Economic fluctuations, Economic growth, Unemployment etc. On the basis of nature of an economy, it can be classified as • Closed Economy & Open Economy • Simple Economy & Complex Economy • Free Enterprise Economy & Planned Economy • Agricultural Economy & Industrial Economy. On the basis of ownership of resources, economy can be classified as • Capitalistic Economy • Socialistic Economy • Mixed Economy. On the basis of growth of an economy, it can be classified as • Developed Economy • Underdeveloped Economy • Developing Economy. CLOSED ECONOMY & OPEN ECONOMY Closed Economy is that Open Economy is that economy in which neither economy in which import and import nor export takes place export both takes place. It is i.e. no international trade takes an economy which allows place within the country under unlimited flow of goods and this economy. services from other economies. A Simple Economy is the one in which --- a) There is no application of knowledge of science. b) There is no use of Currency. On the other hand, Complex economy is the one in which--- a) There is application of knowledge of science and b) There is use of currency. Free Enterprise Economy Planned Economy Economy in which all economic Economy in which all economic decisions are made by the private decisions are made by the Central entrepreneurs or any individuals. They Planning Authority or the Government can take free decisions in the course of of the country. Government or that production, distribution, sale, purchase, Authority is the ultimate decision maker pricing and marketing also. in this regard. Agricultural Economy Industrial Economy Agricultural Economy is that economy in On the other hand, Industrial Economy which maximum number of people are is that economy in which all economic engaged in agricultural and other allied activities are mainly depended upon activities in a country. Main source of cottage, small, medium and large sized livelihood of the country mainly depends industries. Largest part of contribution in upon agriculture and largest share of GDP is originated from Industrial Sector contribution in GDP originates from under this economy. Most advanced agricultural production under this countries in the world are mainly based economy. on industrial production. Capitalistic Economy Capitalistic Economy is that economic system in which resources are occupied by the private entrepreneurs. Private Property, Price mechanism, Freedom of Enterprise, Sovereignty of the Consumer, Competition and co-operation, Profit Motive, No Government interference, Self-Interest etc are the main characteristics of this type of Economy. Socialistic Economy Socialistic Economy or Socialist Economy or Planned Economy means such an economic system in which factors of production are owned by the entire society and operated by the Government. Factors of production are in the hands of the State. Optimum allocation of resources are made through economic planning. Social Welfare motive. The state has a monopoly power in production and distribution. Mixed Economy Mixed Economy is that economy in which Public Sector and Private Sector both run side by side. In other words, it is that economy in which features of Capitalistic Economy lies on the one hand and features of Socialistic Economy lies on the other. India and its neighbouring countries are examples of this economy. Private Sector enjoys full freedom under this economy but ultimate control lies in the hands of the Government only. Developed Economy Developed Economy is that economy in which economic growth is very high, per capita income of the people of that country is also high . Standard of living of the masses is up to the mark in this economy. Savings and Investment rate also increases under this economy. Underdeveloped Economy Underdeveloped Economy is that economy where per capita income is very low and national income contribution is mainly dependent on agriculture and other allied activities. Mass poverty, low savings and investment, high illiteracy, huge population, weak infrastructural facilities, low capital formation etc are the main features of an Underdeveloped Economy. Developing Economy Developing Economy is that economy which is neither fully developed nor fully underdeveloped. It lies in between two stage. India and its neighbouring countries are examples of developing economy. 1.Economics is a ) Science b) An Arts c) Commerce d) Social Science. 2. Indian Economy is a) Capitalist Economy b) Socialist Economy c) Mixed Economy d) None of these 3. The term ‘Economics’ has been originally derived from------ a ) Eikomia b) Oikomia c) Eikonomia d) Oikonomia 4. Oikonomia is a------ a) Greek Word b) French Word c) Spanish Word d) Latin Word 5. The term ‘Oikonomia’ means------ a ) Office Management b) Household Management c) Financial Management d) Personnel Management. 6. Example of Developing Economy is------- a) India b) USA c) USSR d) Any of the above. 7. Profit motive is an essential feature of --------- a) Capitalist Economy b) Socialist Economy c) Mixed Economy d) None of these 8. Social welfare is characteristic of --------- a) Capitalist Economy b) Socialist Economy c) Mixed Economy d) None of these. THIS WAS ALL ABOUT THE TOPIC