Basics of SSC Economics PDF

PA RM A R SS C  Indian Economy - Macroeconomics - Microeconomics -...

PA RM A R SS C  Indian Economy - Macroeconomics - Microeconomics - Focused with the action of individuals/ Focused on the action of govt./... C businesses countries take to influence broader Individuals, firm economies Father: Adam Smith “The wealth of SS GDP, NI, Inflation nation” Father: J. M. Keynes (England) Demand and Supply Classifications - 3 types of economic systems 1. Capitalist 2. Socialist 3. Mixed R Govt. has no share holding private has no ownership Both eg: India A Capatalist Socialist Mixed Public+Private RM Ownership Private ownership Public ownership Economic motive Profit Social welfare Both Govt. role No role Complete involvement Limited role Income distribution Unequal Equal Less unequal PA Economic freedom Complete Lack of freedom Limited freedom eg: USA eg: USSR, North Korea eg: India  1991: Licence Raj - Disinvestment: Govt. sell it’s shareholdings ↓ x LPG Balance of payment C Sectors of Economy.. - - Backbone on of Indian Economy: Agriculture 1. Primary SS 2. Secondary 3. Tertiary Primary Sector - R Directly dependent on environment, also called agriculture sector A In India primary sector seen mostly in agriculture Activities: ↑ - Agriculture RM - - Fishing red collar jobs / Hunting and gathering I - Forestry Ghar se bahar ↑ Mining nikalna padega to perform such All sectors are interlinked PA jobs I Secondary Sector... ↑ Also called manufacturing sector ↑ These add value to natural resources by transforming raw materials into valuable products Activities: I Manufacturing  Processing i Blue collar jobs, not developed in India properly, we have Building/Construction work - leaped to tertiary sector directly Secondary sector is called backbone of a country, helps in industrialisation of a country eg: China 24-25% C SS R A Tertiary Sector RM Also known as service sector It is that part of economy where business produce * services services eg: teaching, transport, advertising, retail It is always intangible in nature PA which cannot be Tangible: that which can be touched touched Also, known as White collar jobs  C I - SS ↓ Thermal energy Coal R A Decision making activity - eg: Activity of Politicians This sector is known as RM Gold collar jobs -> Scientists that are highly qualified Also known as knowledge sector eg: Senior business executive PA ~ Highest contribution in our economy: Tertiary sector (India+other countries) I Primary sector employs more no. of people, least contribution in GDP⑳(21-22%) (14.39%) # - Least no of people employed in Tertiary - GDP contribution: 31.46% sector and contributes s more most in GDP (54.15%) (54%) ⑳  C competition in goods SS -- making R A I - RM Transport Banking Facilitates trade Advertisement PA  C SS R A RM PA > Employees’ Provident Fund  C SS R A RM PA 1- India is no. 1 Season based employment - PA RM A R SS C PA RM A R SS C PA RM A R SS C PA RM A R SS C  C SS R A RM Investment Turnover Micro Less than Rs 1 Cr Less than Rs 5 Cr Less than Rs 50 Cr PA Small Less than Rs 10 Cr Medium Less than Rs 20 Cr Less than Rs 100 Cr W r Stock: variables is measured over a specific period of time eg: Inventory, cash, machinery, tools - Flow: variable is measured over a defined period of time eg: expenditure, savings, depreciation C SS R A RM PA