Economics only tells us how a man utilizes his limited resources for the satisfaction of his unlimited wants. Economics does not study the human organization like the State. Conclusion Economics is concerned with human well-being as well as ethical values. Every educated person is keen to know something about Economics, if he has not studied it already. This simply means that economists should take ends as given. Microeconomics is based on partial equilibrium analysis which helps to explain the equilibrium conditions of an individual, a firm, an industry and a factor.
Useful for Householders: A householder will arrange his expenditure much better if he has studied Economics. History is also useful in establishing or verifying economic theories and laws. It does not merely tell a tale of kings. Each organization may be different from others. It is said to concern itself merely with means, and ends lie outside its scope. Thus, macroeconomics has special significance in studying the causes, effects and remedies of general unemployment.
The result is that the literature on economic growth has enormously increased. Economic theorists have taught- us that a country can no I become rich merely by multiplying its currency; but later on under the leadership of Keynes. These points validate that the nature of economics is correlated with science. Economic laws are, therefore, merely statements of tendencies or of statistical probabilities. Scope and Importance of Macroeconomics : As a method of economic analysis macroeconomics is of much theoretical and practical importance.
Thus, economics should not study the problem of choice faced by a single individual like Robinson Crusoe. Indeed, few scientists of any kind enjoy so much prestige as the economists J. Inter-relation of the Departments of Economics: The four departments of Economics—Consumption, Production, Exchange and Distribution—do not stand apart in watertight compartments. Nature of Economics The nature of economics deals with the question that whether economics falls into the category of science or arts. Thus, it is clear that the study of Economics goes to build up a body of keen, intelligent and useful citizens. Divisions of Economics: Traditional Approach: According to the old view, the study of Economics is divided into four main departments or divisions, viz.
He can prepare a family budget and put his household expenditure on a rational basis. Many English economists consider that Economics is a pure science and not an art. Thus, the controls also generate an unintended result an increase in the energy costs for some consumers. But unless there are consumers, no exchange is called for. In Macro-economics, we also study how the economy as a whole grows or develops. The loan raised by the government in a particular year is the part of receipts of the public authority.
For example, a ball thrown upwards must fall back on earth. They are not water-tight compartments. It advocates the involvement of the central bank and the government to formulate monetary and fiscal policies to monitor the output over the business cycle. It goes on amendments in the dawn of new specifics based on interpretations. Economics is a study of economic problems. Problems It deals with micro problems such as determination of: price of a commodity, a factor of production, satisfaction of a consumer etc. It is link between consumer and producer.
They are all covered by price theory. Here a man produces what he does not consume and consumes that he does not produce. Practical Importance: Besides the knowledge that Economics gives us, it has a great practical value in life. Moreover, it throws much light in solving the problems of unemployment, inflation, economic instability and economic growth. The two are thus mutually dependent.
Our mission is to provide an online platform to help students to discuss anything and everything about Economics. It is based on time lags, rates of change, past and expected values of variables We don't spam. Political Science is in no better position. This led to the construction of the data on national income. For instance, savings are a private virtue but a public vice. Neo-Classical View and Contemporaries - Alfred Marshall led neo-classical school which placed all the economists a reputable position among social science.
Hence we study both micro-economics and macro-economics. Dependence of Microeconomic Theory on Macroeconomics: Take for instance, when aggregate demand rises during a period of prosperity, the demand for individual products also rises. Science or Art: For quite a long time there was controversy among economists as to whether it is a science or an art. For these attributes, economics can be considered as a science. We also study the nature of demand, whether it is elastic or inelastic, as well as the law of demand. The members of the English classical school were of the opinion that economists were not supposed to make any normative statement or pass any value judgment on the desirability or otherwise of the economic decisions.
We have the best tutors in Economics in the industry. In its turn, the nature of Consumption depends on the Distribution of wealth in a community. Large number of statistical publications is brought out in every country. Welfare definition- criticism : Welfare definition- criticism Restricted scope of economics —considered only material goods. The facts have been carefully under suitable. If there is unequal distribution of income so that income is concentrated in the hands of a few rich, it will tend to reduce the demand for consumer goods.