Definitions [8]
Definition: Natural Science
Natural sciences study naturally occurring objects, phenomena, and the physical laws that govern them.
Definition: Social Science
Social sciences study human behaviour, societies, and the relationships between individuals and groups.
Definition: Economics
- Adam Smith: "Economics is the science of wealth"
- Prof Alfred Marshall: "Economics is a study of mankind in the ordinary business of life. It examines that part of individual and social action which is closely connected with the attainment and use of material requisites of well-being."
- Lionel Robbins: "Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."
Definitions: Microeconomics
- Kenneth Boulding: "Microeconomics is the study of particular firms, particular households, individual prices, wages, incomes, individual industries, and particular commodities."
- Maurice Dobb: “Microeconomics is, in fact, a microscopic study of the economy.”
- Prof. A. P. Lerner: "Microeconomics consists of looking at the economy through a microscope, as it were, to see how the millions of cells in the body of the economy-the individuals or households as consumers and individuals or firms as producers–play their part in the working of the whole economic organism."
- "Micro-economics theory explains the composition or allocation of total production, why more of some things are produced than of others." — Watson
- "Micro economics is concerned with economic activities of economic units as consumers, resource owners and business firms." — Leftwitch
- "Micro economics deals with small parts of the economy." — Shapiro
Definition: Services
Intangible activities that satisfy human wants.
- No material existence (you experience an action).
- Examples: Teaching, haircut, healthcare, and ride-sharing.
Definition: Goods
Tangible items that satisfy human wants.
- Material existence (you can touch and store them).
- Examples: Chalk, textbooks, smartphones, clothing.
Definition: Utility
- “Utility is the ability of a good to satisfy a want.” (Prof. Hibdon)
- “Utility may be the quality which makes a thing desirable.” (J.S. Nicholson)
Definition: Macroeconomics
- Kenneth Boulding: "Macro Economics deals not with individual quantities as such but with the aggregates of these quantities, not with the individual incomes but with the national income, not with individual prices but with the general price level, not with individual output but with the national output."
- J.L. Hansen: "Macroeconomics is that branch of economics which considers the relationship between large aggregates such as the volume of employment, total amount of savings, investment, national income, etc."
- Prof Carl Shapiro: "Macroeconomics deals with the functioning of the economy as a whole."
- Gardner Ackley: "Macroeconomics concerns itself with such variables as the aggregate volume of the output of any economy, within the extent to which its resources are employed with the size of the national income, with the general price level."
Formulae [1]
Formula
Want = Desire + Money + Willingness to Purchase.
Key Points
Key Points: Branches of Economics
- Historical Significance: Ragnar Frisch's 1933 contribution established systematic economic analysis frameworks.
- Scale Distinction: Microeconomics studies individual units; macroeconomics examines aggregate systems.
- Greek Origins: 'Mikros' (small) and 'Makros' (large) provide intuitive understanding of scope.
- Interconnected Analysis: Both perspectives are necessary for comprehensive economic understanding.
- Real-World Relevance: Economic decisions at all levels affect daily life and national prosperity.
Key Points: Microeconomics
- Microeconomics focuses on individual economic units and markets.
- Supply–Demand and Marginal Analysis are core tools.
- All definitions highlight the focus on individual economic units.
Key Points: Utility
- Utility means want-satisfying power.
- It is subjective, varies with time/place, and forms the base of demand.
- Utility differs from usefulness, pleasure, and satisfaction—each has a unique meaning in economics.
- Common types include form, place, time, service, knowledge, and possession utility.
Key Points: Macroeconomics
Macroeconomics = Understanding the big picture of how India's economy affects your daily life, from job opportunities to price changes to government policies.
Concepts [24]
- Branches of Science
- Natural Science
- Social Science
- Concept of Economics
- Kautilya's Views on Economics
- Types of Economic Systems
- Capitalism
- Socialism
- Mixed Economy
- Branches of Economics
- Microeconomics
- Basic Concepts of Microeconomics > Want
- Basic Concepts of Microeconomics > Goods and Services
- Basic Concepts of Microeconomics > Utility
- Basic Concepts of Microeconomics > Value
- Basic Concepts of Microeconomics > Wealth
- Microeconomics > Personal Income
- Basic Concepts of Microeconomics > Personal Disposable Income
- Microeconomics > Economic Activity
- Types of Income
- Concept of Economic Good
- Macroeconomics
- Cyclical Unemployment
- Difference Between Economic Growth and Economic Development
