User:Soodaakriti

CONCEPT OF ECONOMICS
Economics is a subject matter that deals with economic problems related to human life. Economic problem is a problem of choice. it arises because of two reasons: >Our resources are limited in relation to our wants. Even the richest person on earth would never have enough resources to buy all that he wishes to buy at a point in time. >Resources have alternative uses. with a hundred rupee note, one can either buy medicine for the sick mother or a movie ticket for self. So that there is a problem of choice.

MICROECONOMICS
Micro means small. Microeconomics deals with economic issues related to small economic units: I) an individual consumer 2) an individual producer 3) an individual firm 4) an individual industry and 5) an individual market. A consumer is an important economic unit in the context of microeconomics. He faces the problem of choice. He is to use his resources on the purchase of different goods in a manner such that he is able to maximize his satisfaction. A producer is another important economic unit in the context of microeconomics. He also faces the problem of choice. he is to choose the commodity he should produce so that his profits are maximized. Also, he is to choose the technology that minimizes his cost for the production of a commodity.

Vital Components of Microeconomics
Theory of Consumer Behaviour or the Theory of Demand Theory of Producer Behaviour or the Theory of Supply Theory of Price

MACROECONOMICS
Macro means large. In economics "large" means the economy as a whole. Macroeconomics deals with economic issues related to the economy as a whole. The basic issues include: equilibrium in the economy. Here, we study how is equilibrium struck in terms of the balance between aggregate demand and aggregate supply disequilibrium in the economy: when aggregate demand and aggregate supply are not in the state of balance, and when resources are not fully utilized correction of disequilibrium alone with fuller utilization of resources

Vital Components of Macroeconomics
Theory related to Equilibrium in the Economy Theory related to Disequilibrium in the Economy Theory related to the Correction of Disequilibrium in the Economy

WHAT IS AN ECONOMY?
People perform different economic activities to earn their living. the teachers go to the school, the doctors go to the hospital, the farmers go to their fields and the industrialists go to their industries. The nature and level of the economic activities performed by the people of an area would reveal a system by which people of that area earn their living. the system is called the economy

TYPES OF ECONOMIES
Economic activities are controlled and regulated by the government of a country. But the degree of control varies across different nations. In China, Russia, and North Korea, the degree of control is very high. Such economies where the degree of control is very high are called 'Controlled Economies' or 'Centrally Planned Economies'. Second, there are economies where the degree of control is national (very low). These are called 'Free Economies' or 'Market Economies". Economies of the USA and the UK are examples. Third, there are economies where the degree of control is moderate. They are called Mixed Economies. India is an example.