Compiled by: K. Adi Swarup PatnaikPage 2
Advanced Bank Management
MODULE – A :: ECONOMIC ANALYSIS:
UNIT – 1:
FUNDAMENTALS OF ECONOMICS, MICROECONOMICS & MACROECONOMICS AND TYPES OF ECONOMIES
Economics is “The science which studies human behavior as a relationship between ends andscarce means which have alternative uses. “2)
The essence of Economics is to acknowledge the reality of scarcity and then figure out how toorganize society in a way which produces the most efficient use of resources.3)
is the Father of Modern Economics.4)
An Enquiry into the Nature and Causes of the Wealth of Nations (published in 1776)
iswritten by Adam Smith.5)
Economics is the study of
how wealth is produced and consumed.
definition is known as
. It gave more importance to wealth than toman for whose use wealth is produced.
is coined by
Prof. Alfred Marshal.
He described Economics as
a science ofhuman welfare.
is coined by
Prof. Lionel Robbins.
Prof. Lionel Robbins defines Economics as study o
f “means” and “Ends”.
The means to satisfy human
wants are limited
Resources are not only
limited but have alternative uses
Man has to make a choice.10)
is considered to be the
Founder of the field Micro Economics.
is concerned with the behaviour of individual entities such as markets,firms, and households.12)
is a branch of Economics that deals with the performance, structure andbehaviour of a national or regional economy as a whole and concerned with the overallperformance of the Economy.13)
Founder of the field of
Macro Economics is John Maynard Kenes.
John Maynard Kenes
wrote the book
“General Theory of Employment, Interest andMoney”.(1936)
An analysis of causes of Business cycles
by Mr. Kenes.
A market Economy/ Capitalistic Economy
is one in which individuals and private firms makethe major decisions about production and consumption. E.g.: United Kingdom.17)
A Command Economy/Socialistic Economy
is one in which the government makes allimportant decisions about production and distribution.