ADVANCED BANK MANAGEMENT (ABM)
MODULE - A - ECONOMIC ANALYSIS
UNIT - 1 - Fundamentals of Economics,
Microeconomics & Macro Economics and Types of Economies
1)
Economics
is "The science which studies human behavior as a relationship between ends and
scarce means which have alternative uses".
2)
The
essence of Economics is to acknowledge the reality of scarcity and then figure
out how to organize society in a way which produces the most efficient use of
resources.
3) Adam
Smith is the Father of
Modern Economics.
4)
An
Enquiry into the Nature and Causes of the Wealth of Nations (published in 1776)
is written by Adam
Smith.
5)
Economics
is the study of how wealth is produced and consumed.
6)
Smith’s
definition is known as
Wealth Definition. It gave more importance to wealth than to man for
whose use wealth is produced.
7)
Welfare
Definition is coined by
Prof. Alfred Marshal. He described Economics as a science of human
welfare.
8)
Scarcity
Definition is coined by
Prof. Lionel Robbins.
9)
Prof.
Lionel Robbins defines Economics as study of “means” and “Ends”.
a. Man has unlimited wants
b. The
means to satisfy human wants are limited
c. Resources are not only limited but have
alternative uses
d. Man
has to make a choice.
10) Adam
Smith is considered to be
the Founder of the field Micro Economics.
11)
Micro
Economics is concerned
with the behavior of individual entities such as markets, firms, and households.
12) Macro
Economics is a branch of
Economics that deals with the performance, structure and behavior of a national or regional
economy as a whole and concerned with the overall performance of the Economy.
13)
Founder
of the field of Macro Economics is John Maynard Kenes.
14) John
Maynard Kenes wrote the
book “General Theory of Employment, Interest and Money”.
15)
An
analysis of causes of Business cycles is developed by Mr. Kenes.
16)
A
market Economy/ Capitalistic Economy is one in which individuals and private firms make the major decisions about production and
consumption. E.g.: United Kingdom.
17) A
Command Economy/Socialistic Economy is one in which the government makes all important decisions about production and
distribution.
18)
Mixed
Economy is where public
sector, private sector and joint sector coexist and complement each other. E.g.: India
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