School of Economics

Economy: A geographical area known as an Economy where some people earn their living by performing different economic activities. Like A teacher teaches, Doctor treats patients,to satisfy own needs.         When people are less dependent to each other for their needs, is known as Simple Economy . But when the degree of dependence is high then it is called Complex Economy. At present we are living in complex economy, because our needs are very vast. Types of Economy 1-Centrally Planned Economy 2-Free or market Economy 3-Mixed Economy 1-Centrally planned Economy- These are those economy where maximum economic decisions are taken by some central authority or central government to keeping view in mind to maximize social welfare.Consumers are not sovereign in this economy. Public sector dominates the economy. Like Russia ,China(Before) Etc. (Economic decisions are mainly What to produce ,how to produce and for whom to produce) 2-Market or Free Economy:  These ar...

  Positive and Normative Economics Positive Economics: It deals with Economic statement related to past, present or future . It deals with such economic situation which can be studied by using facts and figures thus it is verifiable in nature. Ex: Population of India is more than 120 crores. Normative Economics: It is the Economics of " What is ought to be". It deals with the opinions of Economists related to the Economic issues or problems. Different Economists may offer different opinions on the solution to an economic problem, thus it cannot be verified. Ex: Wage of a worker must be ₹1000/ per day. For more detail: please view this video ,subscribe #vc official on youtube.

  Economics : It is that branch of knowledge in which those activities of human beings are studied which they undertake to acquire scarce means to satisfy their unlimited wants. It is the rational management of scarce resources at optimum level. Resource is anything which is useful to satisfy the human wants,but it is technologically accessible,economically feasible and culturally acceptable. In Economics resources are means to production(Land,Labour , Capital, Entrepreneur). Characteristics of resources in Economics: 1- It is scarce in nature. Like land etc 2- It has alternative uses. Like we can use land for farming or living. 3-Human wants are unlimited for resources. Like we want enough land on which we can produce everything as well as we live comfortably. The above three factors leads to choice,thus scarcity and choice is the essence of Economics. Branches of Economics 1-Micro Economics 2-Macro Economics 1-Micro Economics: It is that branch of economics which deals with econ...