Economics of meaning
Economics is a science that studies human behavior that aims to allocate scarce resources in such a way that consumers can maximize their satisfaction, producers maximize their profit, and society can maximize its social welfare. It is about making choices in the presence of scatter.
# Security means lack of goods and resources in relation to their demand.
Scarcity is the root of all economic problems.
Adam Smith, father of economics, provided the wealth definition of economics: - Economics is the investigation of the factors which determine the wealth of a country.
Definition of scarcity given by Lionel Robbins: - Economics is a science that studies human behavior as a relation between the end and the rare that has alternative uses.
Paul A. Development Definition given by Samuelson: - Economics is the study of how man and society chooses, with or without the use of money, to employ scarce productive resources that provide overtime to various goods and consume them We do. An alternative use may be to distribute for. And between different people and society groups in the future.
Resources are:
(A) Rare / Limited
(B) Option Is Used
Type of activities:
1. Economic Activities
- Production
- Consumption
- Investment
- Exchange
- Distribution
2. Non-economics activities
a.Social
b. Religious
c. Political
d. Charitable
e. Parental
Economic activities are activities related to earning money and property for life. These activities generate new income and increase the flow of goods and services. For example production, consumption, investment, distribution.
Non-economic activities are those activities which are not related to money and earning money. These activities neither generate income nor increase the flow of goods and services. For example, a teacher teaches his own son.
Consumer: A consumer is an economic agent who purchases goods and services to fulfill his desire.
Producer: is one who produces goods and services for the creation of income.
Service Holder: A person who is in a job and gives his services as a factor of production and is being paid for it. Like the government. teacher.
Service Provider: A person who provides services to others for payment. Such as transporter, auto driver.
Statistics: Statistics is a method of making decisions based on numerical data.
Statistics can be defined in two ways: -
1. Singular means: Statistical means statistical methods and techniques related to collection, organization, classification, presentation, analysis and interpretation of data.
2. Plural sensor: Statistics refers to numerical facts and figures. Which have been systematically collected for a certain purpose in any field of study.
Characteristics of statistics in plural
1. Aggregation of facts
2. Numerically expressed
3. Affected by the multiplicity of reasons
4. Reasonable Accuracy
5. Collected in a systematic way
6. Pre-defined objectives
7. placed in relation to each other
Steps of Statistics in Unique Meaning
1. Collection of data
2. Organization of data
3. Presentation of data
4. Data Analysis
5. Interpretation of data
Statistical Data
(1) Qualitative data - not measured in numerical terms like beauty and intelligence.
(2) Quantitative data - measured in numerical terms such as price and income.
Scope of Statistics
In the old days, the use of statistics to deal with state affairs was prohibited. But now a days the scope of data has spread to all fields where numerical facts are used such as economics, business industry, medicine, physics, chemistry and many other fields of knowledge.
Importance of Statistics in Economics
1. It enables an economist to present economic facts accurately and precisely.
2. Some numerical measures helps to consolidate mass data data.
3. Statistics are used to find relationships between various economic factors.
4. Economics forecasting through statistical studies.
5. Helpful in formulating appropriate economic policies that solve economic problems.
6. Help analyze the performance of policies implemented earlier.
7. Economists try to find a cause-and-effect relationship between different sets of data.
8. Formation of policies.
9. Used for inter-regional and inter-temporal comparisons.
10. It is a quantitative expression for the economic problem.
Statistics work
1. Statistics simplify complications.
2. It expresses a number of facts.
3. It presents the data in condensed form.
4. Statistics compare individual events and assure the relationship between them.
5. Supporting information of statistics policies.
6. Statistics is helpful in economic forecasting.
7. It facilitates comparison.
8. It is useful in testing the laws of other sciences.
9. It helps in establishing correlation between two facts.
Statistic limit
1. Statistics does not study individuals.
2. Data results may result in a drop in results.
3. Statistics is only concerned with quantitative facts.
4. Statistics laws are only correct on average.
5. Only experts can make best use of data.
6. Uniformity and symmetry of data is necessary.
7. Misuse of data is actually its biggest limitation because misuse of data is possible.
8. Study of Aggregates Only
9. Without context, the results can be proved wrong.
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