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Thursday 14 June 2012

Definition of Economics

MICRO ECONOMICS ECONOMICS
Uses of scare resources in order to get maximum satisfaction is said to be Economics.
OR
An Economics is a mechanism that allocates scare resources among competing uses.
SCARCITY
Scarcity is defined as we looking for more as the resources available now.
Economics is arise when we have following things.
1. What
2. How
3. Whom
What goods and services will produce and what quantity to produce.
How will be various good and services be produce.
for Whom will the various goods and services be produce.
Distribution of Economics benefit depends on the distribution of income and wealth.
Economics has two type.
A. Decision Maker.
B. Coordination Mechanism.
Any Person or organization of person that make choices are deals in decision market.
Decision Maker fall in to three group.
i. House
ii. Firms
iii. Government
Economy is change country to country. Advance countries go for capital but some have limitation of qualified labour.
OPPORTUNITY COST
Economist use the term opportunity cost of emphasis that making choice in the fact of Scarcity implies a cost OR We go for best in order to forgone other upon them.
Economics other divided into two parts.
1. Micro Economics
2. Macro Economics
Micro Economics
Micro Economics deals with single, individual or a particular firm, consumer or producer.
Macro Economics
Macro Economics deals as whole or over all performance of economy like national income.
According to the Adam Smith
Economics is the study of wealth and according to him wealth is for man but not man is for wealth.
According to Robbins
Economics is the study of human behaviors as a relation between ends and scare moons which have alternate uses.
CONSUMER
1. To get the maximum satisfaction from producer (House Hold Sector) supplier of loan.
2. They are lender of loan. They purchases their bonds.
PRODUCER
1. To get profit from consumer pockets. (Business Sector) Desire the borrowed the loan.
2. Demand the loan. They print new loan to borrow the loan.

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