ECONOMICS

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DEFINATION

“ Economics is the study of how people and society choose to employ scarce resources that could have alternative uses in order to produce various commodities that satisfy their wants and to distribute them for consumption among various persons and groups in society.”

Why Economics ?

Alfred Marshall “the study of man in the ordinary business of life”

WHAT ARE YOU?

CONSUMERS

When a person buys goods and wants to satisfy his own personal needs or those of his family or those of any other person, he is called a Consumer.

SELLER

When a person sells goods to make profit , he is called a Seller

PRODUCER

When a person produces goods , he is called Producers

SERVICE HOLDER AND PROVIDER

When a person works for other and is paid for it, he is called an employee. He gets wages or salary and he is called ………?……

When a person provides a service to other for a payment he is called ………?…….

WE CANNOT GET SOMETHING FOR NOTHING• Aladdin and his magic lamp

• Scarcity

• Resources have alternative uses

• Problem of choice

ECONOMIC ACTIVITIES

Consumption : how consumer decides , given his income and many alternative to choose from.

Production : what , how , whom to produce ?

Distribution : National income and distribution of income

WHAT IS STATISTICS ?

Statistics is used in singular and plural senses.in the plural sense statistics means numirical facts , systematically collected.Statistics in singular sense,means the science of collecting ,classifying and using statictis or statistical facts.

WHAT STATISTICS DOES?

• Statics enables an economist to present economic facts in a precise and definite form .

• Exact facts are more convincing than vague statements.

• Statistics also helps in condensing the mass of data into few numerical measures, which helps summarise the data .

• Statistics data help in formulating economic policies that solve economic problems.

• Statistical tools are used in prediction of future trends.

ANY QUESTION ?