Introduction to Econonomics

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WELCOME

INTRODUCTION TO ECONOMICSBy

D.B.Naidu


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DEFINITION

OF

MICRO ECONOMICS

The term economics, from the Greek oikonomika,

means a science or art of managing the household. In

modern usage, it refers to the efficient allocation ofscarce resources in the production, distribution, and

consumption of goods and services to satisfy various

desires. As a branch of knowledge, economics or

economic science is the study of how to efficiently uselimited resourcesnatural resources (land),labor,

capital, and entrepreneurship to achieve maximum

satisfaction of human material wants.


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DEFINITION

OF

MACRO ECONOMICS

Macro economics is the study of behavior of the economy as

a whole. It deals with the aggregate economy and the

behavior of its major unitshouseholds, businesses,

Government, and the foreign sector. Macroeconomics is

concerned with aggregate and average of entire economy.

e.g. In Macro economics we study about forest not about

tree. In other words in macro economics study how these

aggregates and averages of economy as whole aredetermined and what causes fluctuation in them. For making

of useful economic policies for the nation macroeconomics is

necessary.


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OTHER DEFINITIONS

Mercantilism or bullionism( wealth fixed)

Physiocracy(only Agriculture Quesney of France)

Classical Economics(AdamSmith)

Marxist Economics(Karl Marx)Neoclassical Economics (Marshall & Ricardo)


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ECONOMICSGLOBAL ORGANIZATION AND ORIENTATION

The Great Depression led to a declining faith

in the classical (laissez-faire) self-regulatingfree market capitalism, and the emergence of

Government interventionism, following the

publication, by John Maynard Keynes in 1936,ofThe General Theory of Money, Interest, and

Employment


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FUNDAMENTAL ECONOMIC CONCEPTS

HUMAN WANTS


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LAW

OF

DIMINISHING UTILITY


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LAW

OF

DEMAND AND SUPPLY


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ANALYSIS OF DEMAND


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ANALYSIS OF SUPPLY


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AGRICULTURAL

LAWOF

DIMINISHINGRETURNS


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MECHANISM

OF

EXCHANGE


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EXCHANGEWITHOUT MONEY

(Promise to Pay)


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CREDIT

KINDS OF CREDIT

COMMERCIAL CREDIT

COST OF CREDIT

WHAT CREDIT DOES


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MONEY

BANK NOTES

POPULATION AND THE MONEY DEMAND

FUNCTIONS OF MONEY

TOKEN MONEY

PAPER MONEY


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PRICESOF

COMMODITIES


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GRESHAM'S LAW:


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THANK YOU ALL

QUESTIONS PLEASEFriday, October 11, 2013

D.B.Naidu92480-05303

[email protected]
mailto:[email protected]:[email protected]

Introduction to Econonomics

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