The literal meaning of economics is the science of money, under economics, the overall study and analysis of money and all its related aspects is done.
Five major pillars of economics
Finance In modern economics, along with the study of the above traditional areas, many new concepts are also studied such as revenue, public welfare (revenue). Public Welfare), International Trade, Foreign Exchange, Banking etc. Opinions of scholars regarding the definition of economics
• Alfred Marshall Economics The study of human behavior Adam Smith Economics is the science of wealth.
Adam Smith - 1723 - 1790 is called the Father of Economics. His book (An Inquiry into the Nature and Causes of the Wealth of Nations) (1776) is considered to be the origin of classical economy.
In layman's language all human activities related to money meaning are the subject matter of study of economics. These human activities can be accomplished by a single person or a group of individuals. For example, buying a commodity by a person is an individual level economic activity. Similarly, the activity done by a family, government or private company, will be called collective economic activity.
For the fulfillment of their desires, people are engaged in various activities, which can be classified into two forms.
1. Economic Activities: All the activities related to money and property by human beings are called economic activities. These are measured through monetary value. Therefore, these activities add value to the national income. Example: Doing a business, doing a job, etc.
2. Non-Economic Activities: All the work done by human beings for the purpose of fulfilling social, religious or emotional needs comes under the category of non-economic activities. Through these actions, a person gets self-satisfaction and not money or property, for example: helping the needy, donating blood, etc.
• It is such an economic activity, in which the utility of the commodity or the importance of the commodity is increased. Labor, capital and technology etc. have great importance in production. Therefore, this subject is also included in the study area of economics.
• In the definition, we can say that, under production, any goods or services are manufactured or used according to the need, due to which there is a change in its composition. Production is the conversion of input into output.
• The use of production is called consumption. ( Use of production is called consumption ) .
• Consumption is an economic activity that fulfills the objectives of production. Essential commodities are obtained by consumers by paying a price to the producers.
• Investment is the economic activity by which production is expanded, so that more profit can be obtained.
• The general meaning of exchange is the exchange of goods, but in modern economics, exchange is the economic activity that is related to the purchase and sale of goods. This action is done by money or value. Therefore it is also called production value, which means to determine the value of the product on the basis of different market conditions. Such as perfect competition, imperfect competition, monopoly etc.
Exchange can be divided into two parts -
1. Commercial Exchange
2. Trade Exchange
• Goods or services manufactured by a company, institution or country to citizens and consumers. The delivery system is the distribution system.
• Distribution is the study, by which we know how the country's national income or gross domestic product (GDP) is distributed in the form of wages, wages and profits.
• Distribution is an economic activity that is concerned with the prices of the factors of production; Such as land, labour, capital and undertakings etc. This is also called means evaluation; For example, the value of land i.e. rent, value of labor i.e. wages, value of capital i.e. interest and value of entrepreneur or enterprise i.e. profit.
There are two branches of economics-
1. Micro Economics
• Under microeconomics, economic units are generally studied. The pioneer of microeconomics was Adam Smith.
• The study of the economic activities of individuals and small groups of individuals is called microeconomics.
• According to Prof. Belding, the subjective study of particular firms, particular households, individual wages, individual income, individual enterprises and particular goods, etc., are included in microeconomics.
• Clearly the purpose of microeconomics is to maintain the system of demand and supply in the market and to identify consumption and other elements of demand.
2. Macro Economics
• The word macro is derived from the Greek word makros which means large or large, thus macroeconomics is concerned with the overall performance capacity of the economy. It deals with the study of the problems of the economy like inflation, unemployment, poverty etc.
• Macroeconomics is the economics in which efforts are made to understand the interdependency and interdependence of regional, national and international economies. Apart from this, explaining the national income, savings, business, setting the goals of the national economy and the study of efforts to achieve them are also included.
• Macroeconomics is the branch of economics under which the whole economy is studied as a whole.
Sectors of Economy:
Generally for accounting the economic activities of the entire economy, it is divided into three sectors -
1. Primary Sector
2. Secondary Sector
3. Tertiary Sector
1. Primary Sector
• That sector of the economy, where natural resources are obtained as a product. That is, under this accounting of the natural resources of the economy is done. called the primary sector. It is also called agriculture and allied sector.
Sectors covered under Primary Sector
3. Animal Husbandry
5. Mining (Vertical)
6. Quarrying (Horizontal)
2. Secondary Sector
• The sector of the economy that converts the products of the primary sector into its own Uses raw material in activities (in the form of raw material, called secondary sector. It is also called industrial sector.
• It mainly accounts for the gross production of manufactured goods of the economy. Sectors involved in this are -
(i) ) Construction: Where a permanent asset is to be constructed, such as - Building.
(ii) Manufacturing: Where a commodity is produced, such as cloth, bread, etc.
(iii) Electricity: Works related to gas and water supply etc.
3. Tertiary or Service Sector
• Various types of services are provided in this, hence this sector is also called service sector.
• This sector provides its useful services to the primary and secondary sector of the economy.
• Various types of services are produced in this area.
Sectors covered under Tertiary Sector
1. Transport and Communication
6. Community Services Other Sectors of Economy
4 . Quaternary Sector
• This sector of the economy includes intellectual activities such as government, culture, library, research, education, information technology etc. activities are included.
5. Fifth Sector:
• High level decision-making institutions like government, universities, media, science, non-profit institutions etc. are included in the society or economy.
• The qualitative change that takes place in an economy is called economic development, in which social values are inherent.
• Generally, the increase in the economic growth of a particular region, country or individuals is called economic development, but from the point of view of policy making, economic development includes all those efforts, whose goal is the economic condition and standard of living of a population. Have to improve.
• Various experts have expressed their views in the context of economic development, but in this context G. M . Meier's definition has been widely accepted.
• According to this definition, economic development is the process that results in a long-term increase in the real per capita income of a country, but it should not increase the inequalities of the distribution of income and people living below the poverty line.
Economic development is related to increase in human capital, reduction of inequality and structural changes, which improve the quality of life of human beings.
• It has been the main goal of every developing country that how to increase real per capita income to meet the daily needs. An increase in per capita real income is the true measure of economic development.
• Real economic development refers to the need to address regional social and economic disparities as well as increase poverty and empowerment of marginalized people (particularly women), so that the process of holistic development is more inclusive. Can become
• Growth is related to the increase in the capacity of production of goods and services in the country.
Economic growth refers to the quantitative increase in various variables of the economy, that is, the quantitative change in an economy is economic growth. Give economic growth to growth and increase in per capita output. It can be expressed in the form – increase in total production.
• Economic growth is related to the progressive increase in any component of GDP, such as consumption, government expenditure, investment, net exports.
• Economic growth refers to the real increase in the production of goods and services in the country, it is related to the increase in Gross Domestic Product (GDP), National Income and Per Capita Income.
Economic growth is the name of the end result in economic development, which refers to the increase in aggregate output per capita and physical capital per capita.
Modern Indicators of Economic Development
• The United Nations Development Program (UNDP) is the global development network of the United Nations, which provides a bridge of knowledge, experience and resources to various countries with an emphasis on positive changes, so that life can be improved. To help people do better.
• UNDP was established in 1965. Presently Helen Clark is the President of this organization. Clarke is the first woman to hold this position. The Human Development Report is issued by UNDP every year since 1990. Over the years its standard has been expanded as well as further refined.
In order to overcome the shortcomings of the concept of GDP-based development given by the early economists, the concept of total human development was introduced.
1 . Human Development Index
• Pakistani economist Mehboob-ul-Haq and Indian economist Amartya Sen played an important role in the development of the concept of Human Development Index.
• The value of Human Development Index ranges from 0 to 1. The higher the value of the index, the higher the country is in the category of Human Development Index.
The Human Development Index (HDI) was presented by the United Nations Development Program in the year 1990.
• The following three dimensions and indicators are used in the calculation of Human Development Index.
1. Long and healthy life: Life expectancy at birth.
2. Knowledge average years of school and expected years of school.
3. Gross national income per capita standard of living.
• UNDP Ranks economies based on their performance on a scale of one (ie 0.000-1.000) based on the three parameters mentioned above. Under this, the human development happening in all the countries of the world is classified into four categories on the basis of the specified parameters
1. Countries with very high human development: 0.800 and above
2. Countries with high human development: 0.700 to 0.799 Up to
3. Countries with Moderate Human Development : From 0.550 to 0.699
4. Countries with Low Human Development Less than 0.550
Green Gross Domestic Product (GDP)
• Achieving economic growth within a geographical boundary without harming the environment, that is, while conserving the environment Green GDP.
• Green economy counts those products whose production process does not cause environmental damage.
• Green G . N. P . (Green GNP) is the amount of per capita production that is obtained by keeping the country's natural wealth constant in a given time period. It was started by the World Bank in the year 1995.