Table Of Content

Economy Micro Economics MMaaccrroo EEccoonnoommiiccss www.classmateacademy.com 1 MMaaccrroo EEccoonnoommiiccss www.classmateacademy.com 2 Some Basic Definitions : Economics :It is the social science that analyses the production, distribution and consumption of goods and services . The study of how we work together to transform scarce resources into goods and services to satisfy the most pressing of our infinite wants and how we distribute these goods and sseerrvviicceess aammoonngg oouurrsseellvveess.. Micro Economics: which examines the behaviour of firm, consumers and the role of government. Macro Economics: which deals with Inflation, unemployment, Industrial production and the role of government. www.classmateacademy.com 3 Micro Economics : • Product pricing • Consumer behaviour • Factor pricing • Economic conditions of section of people • Study of firms • Location of a industry MMaaccrroo EEccoonnoommiiccss :: • National income and output • General price level • Balance of trade and payments • External value of money • Saving and investment • Employment and growth. www.classmateacademy.com 4 Every society has to answer three questions: • What goods and services should be produced in the country? • How should the goods and services be produced? Should producers use more human labor or more capital ((mmaacchhiinneess)) ffoorr pprroodduucciinngg tthhiinnggss?? • How should the goods and services be distributed among people? www.classmateacademy.com 5 Types of Economy: Capitalist Economy: It is characterised by existence of private enterprise and ownership of all important sectors. Socialist Economy: It is characterized by existence of public enterprises or state ownership of capital in all iimmppoorrttaanntt sspphheerreess ooff eeccoonnoommiicc aaccttiivviittyy.. Mixed Economy : In this system, public and private sectors co-exist, India economy is a mixed economy. www.classmateacademy.com 6 Adam Smith : • The Theory of Moral Sentiments (1759) • An Enquiry into the Nature and Cause of the Wealth of Nations.(1776) • Market ="the invisible hand" • laissez-faire (let it be) • economics(From Mercantilism to Free trade ) Great Depression : 1929,US John Maynard Keynes : The end Of laissez -Faire General Theory of Employment, Interest and Money (1936) www.classmateacademy.com 7 www.classmateacademy.com 8 socialism: Socialism is a social and economic system characterized by social ownership of the means of production and co-operative management of the economy. was created to contrast against the liberal doctrine of "individualism", which stressed that people act or should act as if they are in isolation from one another Utopian Socialism: ((First person)Thomas Moore,book Utopia) Marx and Engel pointed out that Saint Simon : Voluntary formation of social groups into large family like organizations. From each according to his ability to each according to his need Saint –simon(France),RobertOwen(england),Fourier (USA) www.classmateacademy.com 9 Robert Owen in 1827, father of the cooperative movement. Syndicalism (France) inspired in part by the ideas of Pierre Joseph Proudhon and later by Fernand Pelloutier and Georges Sorel Factories managed by both Workers and Specialist called Syndicates Guild Socialism : G. D. H. Cole & William Morris. TThhee gguuiilldd ssoocciiaalliissttss ""ssttoooodd ffoorr ssttaattee oowwnneerrsshhiipp ooff iinndduussttrryy,, ccoommbbiinneedd with ‘workers’ control’ through delegation of authority to national guilds organized internally on democratic lines The Fabian Society' is a British socialist organization which was established with the purpose of advancing the principles of socialism via gradualist and reformist means. www.classmateacademy.com 10