An Introduction to Economics
The effort of the Blogger is to provide a better, easier and simpler note for
the learning the Subject Economics. The Blog begins with the History of
economics which deals with the evolution to a modern economics. Then it
proceeds to the Basic economic problem which faces all in the form of
unlimited wants and limited resources. These problems can be solved only by
certain decisions of resources allocation. These processes are different in
different Economic Systems. The economic systems prevailed with the
mankind from time immemorial in the form of Barter system.
As the mankind develops, together with the era of scientific inventions, industrial revolution and geographical voyages the Production Concepts evolved into the present state of modern world, undergoing many changes. These changes paved the way for many types of Business Organisations which suits the needs of the society and their economic activities. The Introduction of division of labour and specialisation led to the growth of economic activities of exchange and thus the then society realised the need for Money. The ever growing world's increasing requirement of exchange using money advanced to the creation of many types of Financial Institutions.
The production process, undergoes many changes during these centuries which looked into the social welfare of the factor of production mainly, Labour. The factors which constituted the demand the supply of the labour is considered in with Labour Markets. The businesses are creating utilities at different levels and they are marketing it to the consumers. The Theory of Prices enlightens the various aspects of pricing of goods and services in a market. One among the basic motives of business is Profit Maximisation. To achieve this objective they have to increase the Size and Structure of Business so as to achieve their goals. The longing desire of the businesses to maximise profits empowered them to proceed with an ongoing process of searching new horizons.
In these circumstances there are many possibilities open to the business to mislead their consumers. So the Role of government is vital in every economy as they are the government of the people, by the people and for the people - in most economies. They make political decisions regarding the Economic Development of their nations based on the information given by the respective Economic Indicators. These political decisions are very crucial for the entire people in a country. Hence the study of Population enable the learner to get more awareness about the pattern of requirements and their goals which are conflicting each other - individual's satisfaction, firm's profit and government's welfare objectives, which is one of the causes for basic economic problem faced by all economies.
In the study of economics one cannot isolate a country in the global village of mankind. So they should know about the International aspects of economics. With the best of my knowledge and belief, it is hopefully believed that, this blog will help the basic learning requirements of the subject Economics for O level classes.