Economics PDF

What is Economics 1-It is the social science that analyzes the production, distribution and consumption of goods and services. Economics is of two kinds: 1- Macroeconomic 2- Microeconomic Macroeconomics is the branch of economics that studies the behavior and performance of an eco...

What is Economics 1-It is the social science that analyzes the production, distribution and consumption of goods and services. Economics is of two kinds: 1- Macroeconomic 2- Microeconomic Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product (GDP) and inflation Microeconomics is the study of individuals, households and firms' behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues What is (GDP)? Or Gross Domestic Product ? What is( GNP)? or Gross National Product? These are measures of economy in a certain country. A country’s Economy can be measured by the (GDP) or (GNP) What is GDP or Gross Domestic Product? is the monetary value of all goods and services produced within a country’s boarders over a specific period of time minus the capital assets or rewards out of the country What is GNP or gross National Product ? It is about the monetary value of overall goods and services produced in a country within specific period of time in addition to capital assets and rewards obtained outside of the country What is Per Capita Income? It is an economic measure to find a person’s income in a country That is done by dividing the overall income of the country on the number of population living in that country. Per Capita Income is a good indicator of how people live, poverty limits and other economics statistics. The 4 Types of Economies. Also economy can be divided into four types from distributive point of view. In other words the way scarce resources get distributed within an economy determines the type of economic system. These four different types of economies are ‘- Traditional economy Market economy, Command economy and Mixed economy. Each type of economy has it's own strengths and weaknesses Economic Sectors - Economic sector refers to the different kinds of economic activity that exist within an economy: - It is also a category which a distinctive range of industry is conducted. Economic Sectors are divided into : The Primary Sector : it involves the extraction of raw materials from the earth The secondary sector it is concerned with manufacturing of finished products ( industrial sector) The Tertiary Sector, which involves services like retail sales, commercial transportation, healthcare, and real estate... The Sudan Economic Sectors : We can divide the Sudan economy into three main sectors : Agricultural sector, Industrial Sector and Service Sector Agricultural Sector : ( primary) The most outstanding feature of the Sudan economics is that the Sudan is an agricultural country. The agricultural sector or the primary sector is the most important economic sector in the country. About 75% of population are employed by agriculture and the sector makes up 70 % of the country exports Cotton is the main agriculture export item. Other agricultural products include sesame seeds, sorghum, sugar, livestock, groundnuts and Gum Arabic Gum Arabic The Sudan is a leading global producer of gum Arabic, exporting an average of 60,000 tons of gum annually making up 80% of the global supply. However, little profit from gum production reaches local producers. Inefficient harvesting techniques and unfavorable government policies that result in low producer prices have historically restrained income potential for small farmers. This raw material is essential for the pharmaceutical, cosmetic, food, glass and beverage industries. Livestock It represents a very important part of the national economy, as well. Its production increased during recent years as a result of better veterinary treatment, better credit policy, and higher prices in the market. Fishing is another economic activity in the Sudan given that the Nile River and the Red Sea avail a good chance for this activity. The yearly production averages around 33000 tons from rivers and sea. Agricultural sector contribution to GDP is 39% Industrial Sector Sudan’s industry consists of agricultural processing, sugar production, electronics assembly ,armaments, plastics manufacturing, cement, textiles, shoes, furniture, tanning, medical services, meat processing and various light industries located in any of the 10 Industrial areas in Khartoum. The contribution of industry to GDP is only 8% given the problems facing industry in the Sudan. What are the main industrial areas in the Sudan? Mining The Sudan has great mineral resources, the most important of which is Gold. The country production of gold is more than 100 tons annually providing a great boost to the foreign exchange reserves of the nation, with the participation of many investment companies from all over the world. More than two million people are working in gold mining, formal and informal, and gold contributes nearly 3 billion Dollar a year. Quantities of asbestos, chromium, mica, and copper are now exploited commercially, especially for export to C Oil Oil had once been the most important export industry in Sudan. Before 2011 oil production reached 5,500 barrels a day accounting for between 70% and 90% of Sudan's total exports and resulting in economic boom where the country growth rate increased with infrastructure laid.. With the secession of South Sudan, the country lost 75% of that production, a factor which led to scarcity of hard currency and caused a problem to the country national economy.Industry contributes 25% to GDP The Services Sector The services Sector consists of wholesale and retail trade, tourism including restaurants and hotels, transport, storage, communications; financing, insurance, real estate, business services, community social services, personal services and training and research activities. Services in the Sudan are provided by both public sector and private one. This sector faces multiple problems and described as weak sector. Why? The contribution of services sector to GDP is a bout 36 % Questions 1- What is economics ? 2- What are the measurements of economy? 3- Economics is of two branches. Explain 4- What are types of economics? What are the main characteristics of each? 5- Describe the economic sectors in the Sudan Budget What does 'Budget' mean ? A budget is an estimation of revenue and expenses over a specified future period of time; it is compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a family, a group of people, a business, a government, a country, a multinational organization or just about anything else that makes and spends money. Any Budget is made upon two important bases : (1) Revenue or Resources. (2) Expenditure. Definitions :- (1)Resources :is the income made through production or any other means income. (2) Expenditure is spending made on collective needs and wants such as wages and salaries, pension, provision of goods and services, defense, infrastructure, etc Public Revenue How does the government obtain money ?or what are the governments’ main sources of income or revenue ? Public revenue is divided into three categories :- (1) Taxes Revenue (2)Non Tax Revenue (3) Capital revenue Taxes represent the major part of the government income in most countries They are divided into two categories :- (1) Direct Tax : it is a rate levied (imposed) directly by government on persons or organizations like income tax, property tax, payroll tax, business profit tax, corporation tax ,inheritance tax etc.. (2) Indirect Tax: It is a rate collected by the government through an intermediary like, custom duty, excise study, value added tax (VAT), sales tax etc (2) Non tax revenue Non tax revenue includes: - income from public enterprises and property. - Administrative fees and charges that are imposed on public goods and services. - Interest receipts and other non tax revenue - Gifts and grants obtained by government - Fines and penalties. (3) Capital Revenue : it includes sales of fixed capital assets and others Types of Budgets A budget can be classified into three types: 1- Balanced Budget: When resources or income are equal to expenditure, it is called a balanced budget. 2- Deficit Budget: when expenditure exceeds resources or income , the budget is said to be deficit.... 3- Surplus: When government income or revenue are more than expenditure. Based on previous information, answer the following questions :- 1-How is budget made? 2-which type of budget do you think we have in the Sudan? Describe the budget of the Sudan. 2- Which type of budget is preferred? Why? Balance of Trade The relation between the size of exports and size of exports in a country is called Balance of Trade. Trade deficits occur when a country imports more goods and services than it exports, resulting in a negative balance of trade. They can affect domestic industries, employment, and economic growth, and are influenced by factors such as exchange rates, trade policies, and global economic conditions Examples of Deficit of Budget of the Sudan Government : The year : 2017 The budget - Revenue (Resources) =77 Billion SP. - Expenditure =91,1 Billion SP. How much is the Deficit ? It is 14 SP. Examples of deficit of trade or balance of trade:- 1- The year 2017 :- - Total Exports = 4.Billion Dollar. - Total Imports= 8,2. Billion Dollar - How much is the deficit of trade 2- The year 2022 : - Imports 11.7 Billion dollar Exports 4.4 billion dollar The deficit is : 6.7 billion dollar The year 2023 :- Exports : 2.3 billion dollar Imports : 6.4 billion dollar The deficit is 7 billion dollar\ The Sudan deficit on Balance of Trade is because exports exceed imports. This is a problem of production. It can be attributed to the lack of manufacturing industry and commercial agriculture which make the country dependent on imports for food, manufactured goods and machinery. Economy Management or How is the economy managed ? There are two main instruments to manage the country economy :- 1-Economic policy exercised by Ministry of Finance 2- Monetary ( Fiscal) Policy exercised by the National Bank What Is Economic Policy ? It is the policy maintained by government through ministry of finance to control the country economy What are the areas of economic policy? It covers the following areas : - Budgeting for the national level - Taxation system - Government ownerships- assets and shares - Investment - Labor market - Goods and services provision and prices especially in command economies - Pricing – Employment What Is Monetary Policy? It is a set of actions available to a nation's central bank to achieve sustainable economic growth by adjusting the money supply. That is achieved through the following mechanism : - Hard currency reserve - Money supply and demand - Controlling inflation and promoting economic growth - Determining interest rate of financing - Prices stability What is Psychology? 1-Psychology is scientific study of mind and behavior according to American Association of Psychologists. 2- It is the study of people behavior, performance and mental operation 3- It also refers to application of knowledge which can be used to understand events, treatment , health issues to improve education and employment relationship. Studies of Psychology have started in the 17th century but it was not until the late of the 19th. centaury when Wilhelm Wundt presented his Theory of Human Consciousness in Germany that sparked a lot of studies of this sort of human knowledge that spread throughout the European countries. Other social scholars like Sigmund Freud, Maslow and William James and others contributed considerably to the Psychological knowledge. Later Psychology became an important academic discipline all over the world. Goals of Psychology There are four main goals that Psychology is designed to achieve ; to describe, explain, predict and change the behavior and mental processes of others. These four goals are detailed as follows :- 1- Describing behavior or cognition is the first goal of Psychology. This can enable researchers to develop general laws of human behaviors. 2- Once researches have described general laws of behavior, the second step is to explain how and why this trend occurs. Psychologists will propose theories which can explain a behavior. 3- Psychology aims to be able to predict future behavior of a person from findings or empirical research if application is not confirmed then the explanation it is based on what might need to be revised. 4- Once Psychology has described , explained and made prediction about behavior, changing and controlling a behavior can be attempted. Areas of Psychology There is a number of areas in which Psychology is applied.Examples are :- - Education  - Sports - Media. - Politics - Management - Human Development - Humanities - Natural Sciences. - Art - Scientific Research Why is Studying Psychology Important? 1- Psychology studies people, who and why they do and how someone can improve himself. Therefore, everything a person does is connected to the subject 2- It allows people to understand more about how the body and mind work together. This knowledge can help with decision making and avoiding stressful situation. It can help with the management, setting and achieving goals and living effectively. The science not only allows people to be successful, but it can do so and impact their health. 3- It helps many people tackle their mental illnesses so that they can continue living their lives. 4- Psychological studies have aided in drug development and the ability to diagnose various diseases. How does Psychology help in management? 1- It helps all managers at all levels of management of organizations select, support and train employees. 2- It provides organization with problems solving mechanism that assists in raising employees capacity and avoiding crises. 3- It allows companies design products, build better conditions and foster healthy behavior What is Sociology? Sociology is the study of social science of society, patterns of social relationships, culture and institutions. It is also the social science that deals with social life, community behavior and social change. What does Sociology provide for? It provides insights into the ways of factors such as class, wealth, race gender, ethnicity, age, disability and religion that shape people’s lives. All these factors are the fields through which society is looked at or established. Similarities and Differences between Psychology and Sociology 1- Both of Psychology and Sociology are social sciences that studies human social life. 2- Psychology is the study about individual, while sociology is more about the society as a whole. 3- Psychology studies how an individual functions within society while sociology studies how the society functions for the individuals. Branches of Sociology The main branches of sociology are as follows : - Theoretical sociology that includes micro theory or small/middle/ large theory. - Sociology of Knowledge - Criminology - Sociology of Religion- - Sociology of Economy- - Rural Sociology. - Urban Sociology Although the French philosopher August Comte (1798–1857) is considered the father of Sociology, the Arab philosopher and historian Abulrahaman Ibn Khaldoun (1332-1405) is the first social scientist who laid the foundation of sociology studies. Other famous scientists in the field of such a science are : Harbor Spencer, Carl Marx and Max Weber etc.. Why is it important to study Sociology? 1- Sociology is of great importance in the solution of social problems. The present world is suffering from many problems that can be solved through scientific study of Sociology. It is the task of Sociology to study social problems through the methods of scientific research and to find out solution to them. 2- Studying Sociology helps understand how much actions and consciousness both shape and be shaped by surrounding cultural and social structure Effects of Sociology on Business Sociology can affect business in the following ways :- 1- Sociology focuses on groups, organizations and human interaction and these are essential factors to business study. 2- Social factors that affect business include : lifestyle, culture, community behavior, habits and people preferences. Social Interaction Social interaction is an exchange between two or more individuals and a building block for society. By interacting with one another people design rules, institutions and system within which they seek to live. Social interaction is divided into five categories : exchange ,competition, cooperation, conflict and coercion Culture What is Culture ? Culture is the characteristics of knowledge of a particular group of people. It includes : values, beliefs, systems, rules, languages, organizations, institutions and arts. Multiculturalism Multiculturalism means many different cultures living as one shares all cultural ways It also means a society which has many different cultures People should live together irrespective of their culture in what is known as Unity in Diversity Many countries are multicultural. Give examples Multiculturalism is a cause of different situation ; - It can be a source of strength and unity if multiculturalism is wisely managed like the case USA, India, Switzerland, Malaysia etc.. - In contrast, multiculturalism is a cause of conflict if it is badly managed as the matter of Somalia, Rwanda, Yemen, etc.. The case of Sudan? What is the experiment of Sudan to manage its people multi -social and cultural differences? Did Sudan succeed in maintaining the policy Unity in Diversity? What is Religion? Religion is defined as : 1- A particular system of faith and worship 2- It is pursuit of interest to which someone ascribes supreme importance. Religious belief refers to attitude towards methodological, supernatural or aspect of religion. Religious belief is distinct from religious practice and from religious behavior with some believers not practicing religion and some practioners not believing in religion. Religions of the World The main religions of the world are :- - Christianity - Islam - Buddhism - Hinduism - Judaism and other folk religions What is the purpose of religion in society? Religion has three major functions in society :- 1- It provides social cohesion to help society maintain solidarity through shared rituals and beliefs. 2- It makes social control to impose religious-based morals and values. 3- It provides norms to help maintain conformity and control in society. Why is it important to learn about religion? 1- Religious studies provide access to the mystery of other world and life 2- Religious studies provide opportunity to understand with depth and nuance the many beliefs and rituals that move people to appreciate the alternative world of religious reality Types of Islamic Studies In recent time Islamic Studies have gained importance and extended into number of areas specially in Islamic countries or countries with Islamic majority :- - Qur’anic Studies - Hadith Studies - Islamic Theology - Islamic Law - Islamic Economics - Islamic History - Islamic Culture - Comparative Religion Religion is a source of strength. How? It is the way of thinking, respectfulness, solidarity, equity and unity among individuals of society Religion is not a source of separation and conflict among people of society unless it is misunderstood and misused. Religion and business Religion and business have history of interaction in the way that relates and influences the others as well as affecting socio-cultural evolution , political geography and labor law. How does religion influence business? 1- Religion has approaches to ethics ; in the sense that all religions call for trust, honesty, purity, love ,charity, mercy, cooperation and respect of law. These are part of business ethics that deeply affect business practice and interaction. 2- There are religious ethical objections to economic activities involving industrial sector that are harmful to people, notably alcohol, tobacco, gambling and pornography. Concerns over these issues are shared by all religions. 3- Religion calls for work, building society, thinking and having sciences and motivation that are consistent with religion. That in turn positively affects business What is Politics? - Politics is the way people living in group and taking decisions. - Politics is about making agreement between people so that they live together in groups such as tribes, cities or countries. Politics is important to determine what governance means and what government is at every level of state. The study of politics in universities is known as political science, political studies or public administration7 Public affairs are managed by public administration. In this sense public administration is known as implementation and preparing civil employees for working in public service. It is quite clear that public administration which is associated with government affairs is different from business administration which relates to private sector and its objectives of profit and market competition. Main Differences between Politics and Administration - Politics includes activities of expression, decisions and debates for the purpose of devising policies for public welfare while administration is the body that is responsible for the implementation of these policies.  - Politics and political activities are carried out by parties and elected members, while administration is done by no elected public servants. - The task of policy formation is overlooked by politicians especially legislatives while the executives are responsible for implementation and management. - In politics one must know how to draft inclusive policies and understand the requirements of people, while administration is a scientific task of management and planning. - Politics is always driven by polar opinion and expression , while administration is hardcore management body. Politics and Government Systems Closely related to politics is a system of government applied in a country. Generally speaking there are two distinguishable types of government in the world of today in relation to kinds of governance maintained. The first is Totalitarian Government and the is Democratic Government. Totalitarian Government also known as authoritarian or dictatorship, is characterized by absence of government free election, censorship, lack of freedom of press and expression. Democratic type of government features are free government election , freedom of speech and press, accountability , respect of citizen’s rights and, independence of judiciary and Political participation,. While the first types of government ( authoritarian) are represented by monarch, military regimes and other dictatorships, democratic governments are exemplified by freely elected government in a number of countries like, Britain, USA, France, Japan, India ,etc… Types of Democracies: There are two main kind of democracies in the present world:- 1- Parliamentary System of Democracy, where people elect parliament and in turn the parliament chooses the prime minster from within the winner members. Examples of this kind of democracy is Britain, India, Australia , Malaysia and other countries. 2- Presidential Democracy is a kind of government in which people directly elect the president of the state who in turn chooses minsters and his subordinates to fill in political positions. USA, France, are examples.