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Understanding Of Economic Policy Of Government (for UPSC CSE)
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The lesson focuses on defining economic policy and emphasizes this with examples. Thereby the lesson throws light on the objectives of economic policy: Efficiency, Equity, Growth, and Stability and all these are explained with examples for a clearer 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.]

Unacademy user
Your explanation is better than others
Microeconomics studies the behavior of small individual factors or participants in an economy.It studies the behavior of individual entities such as individual households, firm and industry etc. It talks about individual demand and supply. Macroeconomic- It studies the aggregate demand for all goods and services in the economy and the overall level of output in the economy called aggregate supply. It also studies the equilibrium between aggregate demand and supply popularly known as equilibrium level of national income and employment.
There is very small difference between the macro and micro economy. Micro economy: Micro economy is the study of individual or a business unit, it deals with the aspects that are related to individuals like supply and demands of products. In micro economy we study the resources requirement of the resources as per the individuals. Macro economy: Macro economy is study on higher level that is we study the effect the of supply of resources according to nation.In this we count the effect of issues like Gross domestic product(GDP), unemployment , import and export. Macro Economy focuses on issues that affect the economy as whole.
When i feel sleepy that time i watch your lessons.. While watching your lessons i forget to sleep... this kind of power in your teaching. You know we watch your lessons on projector in room (All aspirants in my town) we from engg background but we like economics more than engg just because of you. we made one equation Ayussh Sanghi = Economics. Thank you so much... Unacademy should get subsides from GOI rather than any other scheme. Hope MHRD soon recognize it.
economics can be subdivided into microeconomics and macroeconomics.Microeconomics deals with smaller units while microeconomics usually involves the study of individual households firms etc in aggregation i.e. in total.Where microeconomics gives us the idea of why rich becomes richer and gets poorer and the reason behind the poverty and all, macroeconomics gives us the idea about a country's output and it's productivity
micro and macro economics are the branches of economics which refers to ultimate decision making on two basis they are 1) micro economics: it enables to understand and make decision as a individual wants inducing to invest what is important on individual scale example: it can be clothes,footwear,ration or individual's performance in a firm , sectional cut offs of banking examinations etc which leads to determine price(marks) on individual basis. While 2) macro economics is a branch which enables to cultivate the economics as a whole unit like monthly expenditure n income of whole family instead of an individual needs,performance of a firm in the market,overall cut offs of banking exams etc these both micro and macro economics enables to know and understand what ultimate decision is to be taken for over all development of a country by determining national income,unemployment crisis,GDP etc.
Bindhu Karthik
2 years ago
nice explanation payal meena.thanx :)

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

  3. WHAT IS ECONOMIC POLICY? Every action taken by any country's government to influence its economy is termed as a part of it's economic policy

  4. EXAMPLE o Five - year plans in India are a part of India's Economic Policy. o The second five year plan was centred around industrialization and the country opened 4 steel plans in collaboration with foreign countries. o India adopted a mixed economy where both public sector and private sector would play a role in the economy. Thus, our industrial policy resolution, 1948 and later 1956, revolved around that philosophy.

  5. EXAMPLE In 1965, India embarked on green revolution and it resulted in improving the agriculture sector tremendously. At the same time, it solved the problem of food security for India.

  6. OBJECTIVE OF ECONOMIC POLICY Efficiency- An efficient economy is one that produces what people want at the least possible cost. If the system allocates resources to the production of things that nobody wants, it is inefficient. Example: Majority of people in Delhi want more dispensaries for affordable medicines but the government chooses to provide them with free water and electricity, then it is an inefficient allocation.

  7. OBJECTIVE OF ECONOMIC POLICY o Equity - A more equal distribution of income and wealth. Example: It is a technical concept as Equity may imply poverty alleviation, but the extent to which the poor should receive cash benefits from the government is the subject of enormous disagreement.

  8. OBJECTIVE OF ECONOMIC POLICY Growth - It is often defined in terms of economic growth. Economic growth is an increase in the total output of an economy. If output grows faster than the population, output per capita rises and standards of living increase.

  9. OBJECTIVE OF ECONOMIC POLICY Stability - It refers to the condition in which national output is growing steadily considering: low inflation and full employment of resources