Ayussh Sanghi is teaching live on Unacademy Plus
INTRODUCTION TO INDIAN ECONOMY 1.2 ECONOMICS AS A DISCIPLINE PRESENTED BY AYUSSH SANGHI
ABOUT ME Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer Follow me on: https://unacademy.in/user/ AyusshSanghi
ECONOMICS AS A DISCIPLINE O Never consider Economics as a burden which scares you. Don't have the following notions that we have to do just this: Inflation Stock Market Unemployment Growth etc. Trust me this is not the end of it. This can be a little mind boggling but if we approach it in a disciplined way we would be able to understand most of the things.
ORIGIN OF ECONOMICS AS A DISCIPLINE Most of the people had the above questions in mind and were not able to get answers for the same. o Most of the 19th century philosophers wanted to get the answer to a simple questions like" o "Why are some people rich and others poor? "Is it fair?" o When these questions regarded segregated thinking the discipline of economics was born.
UNDERSTANDING ECONOMICS Most practical way of understanding economics is to branch it out into: Micro Economics Macro Economics
WHAT IS MICRO-ECONOMICS? o It deals with the functioning of: individual, households O industries, firms O and the behaviour of above-mentioned individual economic decision making units. o Firm's choices about what to produce and how much to charge, and households' choices about what and how much to buy, helps to explain why the economy produces the things it
WHAT IS MICRO-ECONOMICS? o Through Micro-Economics one can answer questions like: Why are some people rich than others? Why is there poverty? Who is considered to be poor? Why some jobs pay more than others?
WHAT IS MACRO-ECONOMICS? o It is the study of aggregates. o Instead of understanding what determines the output of at individual level: single firm or industry or the consumption patterns of a single household or o a group of households, o macroeconomics examines the factors that determine national output, national product.
CONCLUSION We can conclude from the above: Microeconomics studies the individual unit household, firm, and industry. It sees and examines the "trees." Macroeconomics looks at the whole. It sees and analyses the "forest."