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Definition Of Economics (for UPSC CSE)
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This lesson focuses on the definition of Economics and further explanation of the same. It also throws light on important terms that one requires knowing in Economics like the meaning of limited resources with the help of examples. Ayussh also explains why should Economics be studied and what is opportunity cost with examples for better understanding.

Ayussh Sanghi is teaching live on Unacademy Plus

Ayussh Sanghi
Passionate Educator - CSE / Other Govt Exams [Peep into my Unacademy Plus Courses & experience awesome learning.]

U
Unacademy user
Sir, at present i am referring Mrunal Economy videos present on Utube channel (Set of 85 Videos). should i refer the Entire set of videos or just the relevant parts as it contains Economic Survey too..should i skip that part..?
should we really learn economics for civil services examination? It is economics or economy? how to differentiate b/n both? please clear. Thank you for making this course!
Farheen Idrisi
2 years ago
Economics is a subject and economy is noting it self when we don't add any contury like Indian economy Amarican economy .
A Khan
2 years ago
sir could you please make a course on pros and cons of economics as an optional, it would be of immense help to me I have done b.com so I slightly inclined towards economy as an optional as opposed to history and geography if the don't mind, could you plz guide me in this matter??
A Khan
2 years ago
sir could you please make a course on pros and cons of economics as an optional, it would be of immense help to me I have done b.com so I slightly inclined towards economy as an optional as opposed to history and geography if the don't mind, could you plz guide me in this matter??
Prashansa Pratik
2 years ago
Hi... Economy is a sub subject under Economics... Economics itself is a very wide subject and Economy as such forms a part if it. However, to understand economy properly, u need to understand some basic concepts of Economics, which this course discusses.
Alekhya Murikita
7 months ago
Hi Economics defines about the theory and principles and economy is application of those principles and theories..that is why we call Indian economy,French economy etc..Developed Economy refers to the development of the country..
Alekhya Murikita
7 months ago
Hi Economics defines about the theory and principles and economy is application of those principles and theories..that is why we call Indian economy,French economy etc..Developed Economy refers to the development of the country..
sir nothing can be better than this for economy. Shat shat naman
Great Tutor... Hats off...
I never forget "opportunity cost" :) :) :) thanks for such realistic example, which can be easy to remember in first go. Please use such an example a lot.
  1. INTRODUCTION TO INDIAN ECONOMY 1.1 DEFINITION OF ECONOMICS PRESENTED BY AYUSSH SANGHI


  2. ABOUT ME Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer Follow me on: https://unacademy.in/user/ AyusshSanghi


  3. DEFINITION OF ECONOMICS It can be defined as the science of logically oriented human beings: Owith Unlimited wants o Limited resources


  4. DEFINITION OF ECONOMICS Through the term "Limited Resources" we can also understand: o Scarcity - Limited in number Choice How to Choose? The limited or scarce resources available with an individual forces him/her to make a choice among its unlimited wants and choose the one he/she prioritizes the most.


  5. EXAMPLE O A 8 year old girl goes to the market with Rs. 10 note in her pocket. With this money she wishes to buy: o a pencil, o eraser, o pen, chocolate, e candy o When she reaches the shop, she realizes that all the above-mentioned items cost much more than Rs. 10. Thus, now she has to make a choice about what to buy and what not to buy. Study of these choices is economics.


  6. ECONOMICS CAN ALSO BE DEFINED AS Economics is a behavioural or social science The study of how individuals and societies choose to use the scarce resources that nature has provided to us. Hence in entirety, "it is the study of how people 95 make choices."


  7. WHY SHOULD ECONOMICS BE STUDIED? Think as an individual and not as aspirant. When you're given right to choose with limited resources you would want to know how to use those resources in the best possible manner. Hence the most fundamental reason for studying economics is Opportunity Cost.


  8. WHAT IS OPPORTUNITY COST The decision to give up on something and choose something else is o The cost of making a specific choice includes what we give up by OC. not making the other choice. The best alternative we choose and the others that we forgo, or give up, when we make a choice or a decision is called the opportunity cost of that decision. o This concept applies to individuals, businesses, and entire societies.


  9. EXAMPLE Roman has three choices in front of him: to start his own entrepreneurial venture, o work with GOI as an IAS Officer or Join AllMs as a Doctor. The three choices are in his order of preference. o Thus, Mr. Roman starts his own venture. The cost involved in making that choice is not only the cost of setting the venture, but also the cost of forgoing his IAS/ Doc dream. This cost maybe calculated in terms of the salary/ respect received in IAS/ Doc. inASDo.calltd