Introduction to Economics.pptx

Introduction to Economics Gopal Maliwal  “An economy is a system which provides people, the means to work and earn a living.” Mean = Recourses Fall things used in producing goods and services. Factors of Production – the technical term economists use for resources. Resources 1 -...

Introduction to Economics Gopal Maliwal  “An economy is a system which provides people, the means to work and earn a living.” Mean = Recourses Fall things used in producing goods and services. Factors of Production – the technical term economists use for resources. Resources 1 - Land Everything on the earth in its natural state/the earth’s natural resources. Resources include: - Everything contained in the earth or found in the sea - Coal and crude oil are examples - A lake and all the living things in the lake are also examples. Resources 2 - Labour All the people who work in the economy Labour includes: - Full and Part-time workers - Both the public and the Private sector Resources 3 - Capital The money needed to start and operate a business The goods used in the production process Example are: - Factories - Office Buildings - Computers - Raw materials that are processed into a more useful form (lumber, steel) Resources – 4 Entrepreneurship The skills of the people willing to risk their time and money to run a business Entrepreneurs organize the other factors of production to create the goods and services desired in an economy Infrastructure The physical development of a country. Things necessary for production and distribution of goods & services Parts of the infrastructure include - Roads - Ports - Sanitation Facilities - Utilities  “An economy encompasses all activity related to production, consumption and trade of goods and services in an area.” Why should we study Economics?? Do you Know??? The cost of a movie ticket in weekdays between 10 to 6 pm can be almost Rs. 3000 to me. The success and failure of your invention does not only depend on the innovation that an engineer make. The increase in interest by RBI can increase value of 100 rupees note in your pocket. The decrease in price of a Machine can increase its demand. The increase in price of Vivo Phone can increase the demand of Oppo phone. Why should we study Economics??? Study of Economics helps us to understand business environment Study of Economics helps to understand the impact of various government policies on the life on an individual and market as a whole Economics helps us to decide the price of our product manufactured. Economics study helps us to understand the optimum utilization of our economic resources to fulfil our needs and derive maximum satisfaction. Economics helps to determine day to day, medium to long term budget.