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1. ON
TOPIC
“ECONOMICS AND ITS ECONOMY”
PRESENTED BY:ROHAN GOYAL OF CLASS 12 B
SUBMITTED TO:OUR HONOURABLE TEACHER OF
ECONOMICS
{MISS JYOTI BANSAL}
ECONOMICS
PRESENTATION
2. TOPICS FORTHCOMING IN
PRSENTATION
1.SCARCITY OF RESOURCES.
2.ECONOMIC PROBLEM AND ITS CAUSES.
3.ABOUT ADAM SMITH.
4.WHAT IS ECONOMICS.
5.MICROECONOMICS.
6.COMPONENTS OF MICROECONOMICS.
7.MACROECONOMICS.
8.COMPONENTS OF MACROECONOMICS.
9.DIFFERENCE BETWEEN MICROECONOMICS AND
MACROECONMIC.
10.POSITIVE ECONOMICS AND NORMATIVE ECONOMICS.
11.DIFFERENCE BETWEEN POSITIVE AND NORMATIVE
ECONOMICS.
12.WHAT IS ECONOMY.
13.TYPES OF ECONOMIES.
14.DIFFERENCE BETWEEN ALL ECONOMIES.
3. SCARCITY OF
RESOURCES
SCARCITY IS THE SITUATION IN WHICH DEMAND
EXCEEDS SUPPLY EVEN AT ZERO PRICE
LEVEL.SCARCITY IS HARD FACT OF LIFE.THE
SCARCITY OCCURS DUE TO LIMITED RESOURCES
AND ITS ALTERNATIVE USES.ON THE OTHER
HAND,DEMAND OF CONSUMERS IS UNLIMITED
WHICH CANNOT BE FULFILED WITH THESE
LIMITED RESOURCES.
4. ECONOMIC PROBLEM AND ITS
CAUSES
DEFINATION OF ECONOMIC PROBLEM
The problem of rational management of resources is known
as economic problem and we know that resources are
scarce and has alternative uses so selecting one or more
from available alternatives is known as problem of choice
or economic
problem or problem of resource allocation.
CAUSES OF ECONOMIC PROBLEM
5. ABOUT ADAM SMITH
Adam Smith FRSA (16 June
1723 NS (5 June 1723 OS) –
17 July 1790) was a Scottish
economist, philosopher, and
author. He was a moral
philosopher, a pioneer
of political economy, and was a
key figure during the Scottish
Enlightenment era.[1] He is best
known for two classic
works: The Theory of Moral
Sentiments (1759), and An
Inquiry into the Nature and
Causes of the Wealth of
Nations (1776). The latter,
6. WHAT IS ECONOMICS
THE STUDY OF HUMAN BEHAVIOUR IS KNOWN
AS ECONOMICS AND ECONOMICS AS A
SUBJECT MATTER MEANS OPTIMUM
UTILISATION OF RESOURCES IN SUCH A WAY
SO THAT CONSUMER GETS MAXIMUM
SATISFACTION WITH GIVEN INCOME AND
PRODUCER
GETS MAXIMUM SATISTFACTION.
7. MICROECONOMICS
MICROECONOMICS IS THE ECONOMICS WHICH
STUDY THE ECONOMIC PROBLEM AT INDIVIDUAL
LEVEL.MICRO MEANS SMALL AND IT IS DERIVED
FROM GREEK WORK MIKROS.IT IS ONE OF THE
BRANCH OF ECONOMICS.WHEN WE STUDY
MICROECONOMICS THEN MACRO VARIALBLES
ASSUMED TO BE CONSTANT AND IT IS RELATED
WITH PRICE DETERMINE.
8. COMPONENTS OF
MICROECONOMICS
1.THEORY OF CONSUMER BEHAVIOUR:This theory
study that how consumer attain maximum satisfaction
with his given income and how he choose from various
alternatives.
2.THEORY OF PRODUCER BEHAVIOUR:This theory
study that how producer attain maximum profit by
producing and selling products with given level of
resources and technology he has.
3.THEORY OF PRICE:This theory studies that how price
is determined in the market,although at point where
demand and supply curve cuts,that point is fixed as
price.
4.THEORY OF FACTOR PRICE:As we know that person
pays rent and wages to avail factors of
9. MACROECONOMICS
MACROECONOMICS IS THE ECONOMICS WHICH
DEALS OR STUDY WITH ECONOMIC ISSUES RELATED
TO COUNTRY AS A WHOLE.THE WORD MACRO IS
DERIVED FROM GREEK WORD MAKROS.THIS IS ALSO
ONE OF THE BRANCH OF ECONOMICS AND WHEN
MACROECONOMICS IS STUDIED THEN MICRO
VARIABLES ARE ASSUMED TO BE CONSTANT.IT IS
RELATED
WITH INCOME AND EMPLOYEMENT.
10. COMPONENTS OF
MACROECONOMICS
1.THEORY OF INCOME AND EMPLOYEMENT:The main
issue of the macroeconomics is determination of level of
output,income and employement,so in this theory we will
study that how equilibirium occurs when aggregate
demand is equal to aggregate supply.
2.THEORY OF DISTRIBUTION:This theory studies that
how income is distributed among various factors of
production and various individuals.
3.THEORY OF GENERAL PRICE LEVEL OR
INFLATION:This theory studies that if aggregate demand
exceeds the aggregate demand then it can cause
inflation.
4.THEORY OF FISCAL AND MONETARY POLICY:This
theory studies how government manages its revenue
11. MICROECONOMICS
AND MACROECONOMICS
MICROECONOMICS
1.This studies the economic
issues related to individual .
2.The word micro is derived from
greek word mikros .
3.The microeconomics is related
with price.
4.When microeconomics is
studied then macro variables are
assumed to be constant.
5.The main components of the
microeconomics are as follows:
-theory of supply.
-theory of demand.
-theory of price determination.
-theory of factor price.
MACROECONOMICS
1.This studies the economic
issues related to economy as a
whole.
2.The word macro is derived from
grek word makros.
3.The macroeconomics is related
with income.
4.When macroeconomics is
studied then micro variables are
assumed to be constant.
5.The main components of the
macroeconomics are as follows:
-theory of income and
employement.
-theory of distribution.
-theory of fiscal and monetary
policy.
12. POSITIVE ECONOMICS
DEFINATION AND EXAMPLE OF POSITIVE
ECONOMICS
This is the type of economics which studies the economic
problems related to past,present and future.The
statements of these economics can be verified for truth
and are based on facts and figures.for example:On the
eve of independence indian poverty has great impact on
population than now.so this example is related to past and
it is also a positive statement which can verified
for the truth.
CHARACTERSTICS OF POSITIVE
ECONOMICS
1.Based on facts and figures.
2.Verified for truth.
POSITIVE
ECONOMICS
13. NORMATIVE ECONOMICS
DEFINATION AND EXAMPLE OF NORMATIVE
ECONOMICS
This is the type of economics which merely study the
opinons of economists regarding economic problem.The
statements of normative economics cannot be verified for
truth and are based on value judgement.for
example,poverty allevation program should make
changes to eradicate poverty,so this is merely a
opinion of economists and it cannot be verified for
truth.
CHARACTERSTICS OF NORMATIVE
ECONOMICS
1.Based on value judgement.
2.Related to what ought to be.
NORMATIVE
ECONOMICS
14. AND
NORMATIVE ECONOMICS
POSITIVE
ECONOMICS
1.It studies the
problem related to
past,present and
future.
2.It is based on fact
and figures.
3.It can be verified for
truth.
4.The positive
NORMATIVE
ECONOMICS
1.It studies the merely
opinions of
economists.
2.It is based on
judgement.
3.It cannot be verified
for truth.
4.The normative
statements cannot be
15. WHAT IS AN ECONOMY
DEFINATION OF AN ECONOMY
The economy is a system where people of an
area earn their living.
NATURE AND LEVEL OF THE ECONOMY
The system by which people of an area earn their
living has two elements.
1.Nature of the economic activities performed by the
people of an area
16. TYPES OF AN ECONOMY
1.CENTRALLY PLANNED ECONOMY:This is type of an
economy in which government has high control and all
the decisions regarding what to produce,how to
produce,for whom to produce are taken by
government.The main motive of this economy is to do
social welfare.
2.MARKET ECONOMY:This is type an economy in which
government has notional or very low control and all the
decisions regarding what to produce,how to produce,for
whom to produce are taken to maximise profit.
CENTRALLY PLANNED
ECONOMY
MARKET
ECONOMY
17. 3.MIXED ECONOMY:This is type of an economy which has
moderate government control and in which major decisions
like what to produce,how to produce,for whom to produce are
taken jointly by the government and private and the main
motive of this economy is to do social welfare and as well as
to maximize profits.
DIFFERENCE BETWEEN
CENTRALLY
MIXED
ECONOMY
18. CONTROLLED
ECONOMY
1.These economies
have very high
government control.
2.The main motive
of this economy is
social welfare.
3.Consumer is not
soverign in this
economy.
4.Public sector
dominate the role.
5.The price is
determined by the
government.
6.Examples are
MIXED
ECONOMY
1.These economies
have moderate
government control.
2.The main motive
of this economy is
to do both.
3.Consumer is
soverign in this
economy.
4.Private and public
sector dominate the
role.
5.The price is
determined by the
both govt and
MARKET
ECONOMY
1.These economies
have notional
government control.
2.The main motive
of this economy is
to earn profit.
3.Consumer is
soverign in this
economy.
4.Private sector
dominate the role.
5.The price is
determined by the
market.
6.Eamples are usa
