2)scope and importance of economics

8/18/2019 2)Scope and Importance of Economics

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Dr.Nimisha BeriAsst.Prof.

LFEH


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Economics is a social science. The subject matter

of economics deals with the analysis of economicproblems of people in the society and the

satisfaction of their wants.

s soc a sc ence econom cs ea s w eeconomic activities of human being..

Resources are needed to satisfy people's wants. So,

the availability of resources and their use are

important subject matter of economics.


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Economics discusses how men can get the

maximum satisfaction by using the scarce meansto satisfy wants on the basis of priority. So, as

subject matter of economics, the scarcity of

.

People's wants are related to production, exchange,

distribution and consumption. Again, currency,

banking system, public finance, trade etc is also

parts of economic activities.


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How economic development of the country is

achieved through the means of economicplanning is also included in the subject matter of

economics.

conom cs scusses e econom c pro ems aneconomic activities and indicates proper solution

to these problems.

Economics also discuses about the value

judgment of human actions and behavior


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Deals with Individual units

Covers Areas like Product Pricing

Theory of Demand

Pricing of goods

Pricing of Services

Economics of Welfare


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Focuses on

Demand Theory Theory of the firm

The demand for labour and other factors of

Welfare Economics

The study of the interaction between markets in

general equilibrium analysis


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Macroeconomics is a study in aggregates. Hence it

is often called Aggregative Economics.Macroeconomics may be defined as that branch of

economic analysis which studies behaviour of not

one par cu ar un , u o a e un s com netogether.

Macro analysis is helpful in understanding the

functioning of economic system because one

individual’s economic study is not helpful for

framing any policy, Hence whole economy’s study

and its analysis is important.


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Deals with Broad Aggregates

Covers Areas like Theory of Income And Employment

Theory of Consumption

Economics of Growth

Monetary Economics

Fiscal Economics


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Focuses on

Sectors of economy Industrial sector

Personal sector

Financial sector

Overseas sector

The determination of national income

Prices

Employment

The role of fiscal and monetary policy

The determination of consumption and investment

The balance of payments

Economic growth


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As the countries of the modern world are

realising the significance of trade with othercountries, the role of international

economics is getting more and more

.


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As after the second world war many

countries got freedom from the colonial rule,their economics required different treatment

for growth and development. This branch


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A new realisation has emerged from human

development for economic growth.Therefore, branches like health economics

are gaining momentum.


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Unchecked emphasis on economic growth

without caring for natural resources andecological balance, now, economic growth is

facing a new challenge from the

.

Therefore, Environmental Economics has

emerged as one of the major branches of

economics that is considered significant for

sustainable development.


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Role of location is quite important for

economic attainments. Therefore,economistshave realised that there should be specific

focus on urban areas and rural areas.

,

like urban economics and rural economics.

Similarly, regional economics is also being

emphasised to meet the challenge of

geographical inequalities.


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Welfare economics,

Monetary economics, Energy economics,

Trans ort economics

Demography,

Labour economics,

Agricultural economics,

Gender economics,

Economic planning,

Economics of infrastructure,


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In the daily life of people: People are confronted withmanifold wants in their daily life. But the resources to

satisfy those wants are limited. By studying economics wecan know the use of limited resources to satisfy alternativewants on the basis of priority.

In the proper use of resources: We can learn about the use.

economics helps us to understand about how to produce themaximum output by the proper use of limited resources.

In state management: The knowledge of economics isindispensable to manage the economic and developmentactivities of a state. For this reason the politicians and thegovt. officers need to have proper knowledge of thecurrency system, banking system, tax system, industrial andtrade policy, budgeting etc. The knowledge of economicshelps in managing the state affairs.


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To social workers: Economic causes lie at the roots of maximum

social problems. The social workers need to have knowledge of

economics to diagnose and solve the problems of poverty,

unemployment, illiteracy, excessive growth of population, lack of

housing and medical facilities etc.

To the labor leaders: The leaders of the workers should have the

respect of the formation of trade unions, the increase of wage andother benefits, the improvement of their working conditions etc. In

economic planning: It is necessary to have sound knowledge of the

economic problems and the available resources for the formulation

and implementation of economic plans for the country. For thisreason the knowledge of economics is indispensable.

Acquisition of knowledge of international issues: The knowledge

of economics is necessary to know and understand the socio

economic events of different countries, international relationship,

commerce etc.

2)scope and importance of economics

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