Awdhesh Singh is teaching live on Unacademy Plus
Introduction: Macroeconomics and Microeconomics Dr Awdhesh Singh, IRS (Retd.) Director, Awdhesh Academy, Former Commissioner, Customs & Indirect Taxes (Central Excise/GST)
.B Tech from IIT-BHU Varanasi, M Tech from IIT- Delhi &PhD IIITM-Gwalior in 2008 Joined IRS (C&IT) in 1991. .Received WCO Certificate of Merit in 2011 Received Presidential Award from Government of India in 2016 .Took VRS in October 2016 in the rank of Commissioner Fifth Most Followed Writer on Quora in the world with around 2.5 lakhs followers and over 115 Million Answer views 2I Authored four bestselling books on the topic of Spiritual Intelligence Leadership, Myths, and GST. . Books on 'Ethics, Integrity and Aptitude' and '31 Director, Awdhesh Academy Ways to Happiness' is expected soon Follow Me @ unacademy.in/user/aksinghirs AwdheshSingh.com
Course is designed for: Civil Services Aspirants .Aspirants of other competitive examinations like Bank PO, SSC, IES . Students of Economics Those who are interested in understanding the fundamentals of economics
What is Economics .Economics is a social science concerned with the production, distribution and consumption of goods and services. It studies how individuals, businesses, governments and nations make choices on allocating resources to satisfy their wants and needs, and tries to determine how these groups should organize and coordinate efforts to achieve maximum output. Economics can generally be broken down into macroeconomics, which concentrates on the behavior of the aggregate economy, and microeconomics, which focuses on individual consumers
Macroeconomics .Macroeconomics is a branch of the economics that studies how the aggregate economy behaves. In macroeconomics, a variety of economy-wide phenomena is thoroughly examined such as inflation, price levels, rate of growth, national income, gross domestic product (GDP) and changes in unemployment. Macroeconomics looks at the overall, big picture scenario of the economy. . It focuses on the way the economy performs as a whole.
The Study of Macroeconomics Macroeconomics study aggregated indicators such as unemployment rates, GDP and price indices, and then analyze how different sectors of the economy relate to one another to understand how the economy functions Macroeconomists develop models explaining relationships between a variety of factors such as consumption, inflation, savings, investments, international trade and finance, national income and output. Such macroeconomic models, and what the models forecast, are used by government entities to aid in the construction and evaluation of economic policy.
Areas of Research in Macroeconomics Two specific areas of research are representative of this disciplinee One area involves the process of understanding the causation and consequences of short-term fluctuations in national income, also known as the business cycle. The other area involves the process by which macroeconomics attempts to understand the factors that determine long-term economic growth, or increases in the national income.
Microeconomics Microeconomics is the social science that studies the implications of individual human action, specifically about how those decisions affect the utilization and distribution of scarce resources. Microeconomics shows how and why different goods have different values, how individuals make more efficient or more productive desonts auais best coordinate a how individuals best coordinate and cooperate with one another. Microeconomics is considered a more complete, advanced and settled science than macroeconomics.
Actors in Microeconomics Microeconomics studies what is likely to happen when individuals make certain choices or when the factors of production change Individual actors are often broken down into microeconomic subgroups, such as buyers, sellers and business owners. These actors interact with the supply and demand for resources, using money and interest rates as a pricing mechanism for coordination
The Uses of Microeconomics Microeconomics does not try to explain what should happen in a market It only explains what to expect if certain conditions change. . If a manufacturer raises the prices of cars, microeconomics says . If a major copper mine collapses in South America, the price of Microeconomics could help an investor see why Apple Inc. Microeconomics could also explain why a higher minimum consumers will tend to buy fewer than before. copper will tend to increase, because supply is restricted. stock prices might fall if consumers buy fewer iPhones. wage might force XYZ Company to hire fewer workers.
References https://www.investopedia.com/terms/e/economics.asp https:II www.investopedia.com/terms/m/macroeconomics.asp https:// www.investopedia.com/terms/m/microeconomics.asp