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Introduction

This document provides an introduction to economics, including: - Defining key economic concepts like scarcity, opportunity cost, and different types of economies. - Outlining the scope and importance of economics as both a theoretical and practical subject. - Describing the subject matter of economics including wealth, wants, resources, and efficiency. - Explaining key economic models like production possibility curves and the circular flow of the economy. - Distinguishing between microeconomics which studies individual units, and macroeconomics which studies the overall economy.

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AGRAWAL UTKARSH
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54 views15 pages

Introduction

This document provides an introduction to economics, including: - Defining key economic concepts like scarcity, opportunity cost, and different types of economies. - Outlining the scope and importance of economics as both a theoretical and practical subject. - Describing the subject matter of economics including wealth, wants, resources, and efficiency. - Explaining key economic models like production possibility curves and the circular flow of the economy. - Distinguishing between microeconomics which studies individual units, and macroeconomics which studies the overall economy.

Uploaded by

AGRAWAL UTKARSH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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INTRODUCTION TO

ECONOMICS
DR. RANJANA AGARWAL
Learning Objectives
To analyze the concept of economics
To know how Economics plays a role in
one’s life
To understand the scope of economics
Terminology
Economic good, Economic activity
Income and employment
Economic development
Choosing between alternative choices with limited
resources
Importance of Economics
THEORETICAL ECONOMICS PRACTICAL IMPORTANCE

Informative Professional value


Mental Training Useful for householders
Analyse functioning of economic Useful for labour leaders
system
Solving problems of poverty
Teaches mutual dependence
Wages
Useful citizenship
Subject matter of Economics
Deals with wealth

Unlimited wants
Scarce means i.e. limited resources
Alternative uses of scarce means

Scarcity & Efficiency are twin themes of economics


A rational consumer will use scarce resources in most
efficient manner
Definitions of Economics
Adam Smith, ‘An inquiry into the nature and causes
of wealth’, 1776

Marshall, ‘A study of mankind in ordinary business


in life, it examine that part of individual and social
actions which is closely related with attainment
and use of material requisites’
About Economics
Economics is a science which studies human
behavior as a relationship between ends and
scarce means which have alternative uses
(Robbins).

Economics – science or art


Positive or normative
Land, labour, capital , organisation
Stages of Economic
Evolution
Hunting and fishing stage
Pastoral stage
Agricultural
Handicrafts stage
Domestic stage
Industrial stage
Services led economy – knowledge based
Digital economy
Questions before Economists
What to produce Type of Economies
How to produce
For whom to produce Capitalist or free market
economy
Socialist Economy
Mixed Economy
Process of Economy –
Circular Flow
Production
Consumption
Investment

Factors of Production
Land, Labour, Capital, Organization
Division of labor ----Specialisation
A production possibility curve
8

6
Units of food (millions)

5 Units of food Units of clothing


(millions) (millions)
4
8m 0.0
7m 2.2m
3 6m 4.0m
5m 5.0m
4m 5.6m
2
3m 6.0m
2m 6.4m
1 1m 6.7m
0 7.0m
0
0 1 2 3 4 5 6 7 8
Units of clothing (millions)
Opportunity Cost
What is opportunity cost?

Does IMT education involve any opportunity cost?


Branches of Economics
Microeconomics Macroeconomics

Study of individual units as Studies economy as a whole.


firm or household. How It is aggregate in character
individuals make choices. and takes the entire
economy as a unit of study.
Price theory
Eg. GDP of India, population
Provides main source of etc.
decision making
Eg.Airtel sales
Different subjects in
Economics
Micro economics applied to Management =
Managerial Economics

International economics
Growth
Banking
Economic history
Agriculture economics
Applied economics……..
THANK YOU

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