The term Economics comes from Greek word oikonomia which means management of household and administration.Adam smith is father of Economics,define as ‘The Science relating to the laws of production,distribution and exchange
Defination of Economics:The science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.
There are two types of Economics
Micro Economics: It is a study of behaviour of individual units of an economy such as individual consumer, producer etc.Ex.Households and firms or as buyers and sellers.
Macro Economics:It is the study of economic system as a whole or overall economy works. It studies broad aggregates like national income,poverty,BoP, employment and trade.
Economy:An economy is a system by which people get their living.The study of economy of any country helps us in finding out the financail condition of population and working sector of the economy.
Economy are two kinds and they are
Open Economy:It is a market economy which is generally free from trade barriers and where export and import from a large % of the GDP.
Close Economy:It is an economy which is no activity is conducted with outside economics.A close economy is self-sufficient,meaning that no imports are brought in and sent out.The goal of such economy is to provide consumers with everything that they need from within the economy’s borders.
Others types of economy
Traditional Economy:Traditional economy is an original economic system in which traditions, customs, and beliefs help shape the goods and the services the economy produces, as well as the rules and manner of their distribution. Countries that use this type of economic system are often rural and farm-based.
Free Market Economy:In economics, a free market is an idealized system in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority
Capital Economy:Economic capital is the amount of risk capital held by a financial services company to enable it to survive any difficulties such as market or credit risks. The amount is determined internally by the company or by shareholders, often using a measure of portfolio risk such as Var, i.e., value at risk.
Socialist Economy:A socialist economic system is characterised by social ownership and operation of the means of production that may take the form of autonomous cooperatives or direct public ownership wherein production is carried out directly for use.
Mixed Economy:An economic system in which both the private enterprise and a degree of state monopoly (usually in public services, defense, infrastructure, and basic industries) coexist. All modern economies are mixed where the means of production are shared between the private and public sectors. Also called dual economy.Dual means Both Agriculture and Industrial Sectors.India is a example of this economy.
Welfare Economy:Welfare economics is defined as a branch of economics that studies how the distribution of income, resources and goods affects the economic well-being. An example of welfare economics is the study of how certain health services help bridge the barrier between different classes of people. Amartya Sen received the Nobel prize in economics for his work in welfare economy
Green Economy:The green economy is defined as an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment
Broad Sectors of Indian Economy
Primary Sector:This sector is involved in the extraction or harvesting of products from the Earth.It is also called raw materials. Ex. Agriculture,Mining,Forestry and Fishing etc.
Secondary Sector:This sector is involved in the production of finished goods.It is also called manufacturing sector. Ex.Building,Cloth and bread,Electricity,gas etc
Tertiary Sector:This sector is involved in Services.Ex.business,transport,telecommunication,banking,insurance,real estate,community and personal service.It is also called service sector.This sector shared largest GDP in Indian economy about 50%.