Economics Concepts and Theories

National income is a subject matter of macroeconomics. Individual, firms and like concepts are parts of microeconomics while study of aggregate is a subject area of macroeconomics.

Dr. Marshall was concerned with welfare economics. Prof. Robbins defined economics as a science of scarcity and choice. Adam Smith was concerned with economics of wealth. Prof. Samuelson defined economics as a science of dynamic growth and development.

Pigou emphasised social welfare, which can be brought by money. J.B. Say is concerned with economics as a science of wealth. Keynes tried to provide the solution to the problems of unemployment by his definition.

National income is a subject matter of macroeconomics. Individual, firms and like concepts are parts of microeconomics while study of aggregate is a subject area of macroeconomics.

Economics is a positive science when it establishes relations like what exists and what is the reason behind it. Economics becomes normative science when it describes 'what should be', which is a field of normative science.

Except (2), all others are central problems of an economy.

The government is neither too passive nor too active in mixed economy.

Recreational values are considered instrumental because they serve as a means to an end, such as refreshing the mind or body to improve overall productivity and health.

Open Market Operations (OMO) involve the buying and selling of government securities by the central bank. This is a primary tool used in monetary or credit policy to control the money supply in the economy.

Total Income is the sum of all money received by an individual or organisation, including income from employment or providing services, revenue from sales, payments from pension plans, income from dividends, or other sources. Thus, capital formation in an economy depends upon its total income generation.

'Open market operation' is a part of credit policy. Open market operation includes any of the purchases and sales of government securities and sometimes commercial paper by the central banking authority for the purpose of regulating the money supply and credit conditions on a continuous basis.

A market is defined broadly as an arrangement or mechanism that facilitates the exchange of goods and services between buyers and sellers, not just a physical location.

It was the short term version of Classical wage theory.

Say's Law, or the law of markets, states that supply creates its own demand, propounded by the French economist Jean-Baptiste Say.

John Maynard Keynes was a British economist whose ideas fundamentally changed the theory and practice of macroeconomics. He is associated with the Keynesian school, not the Classical school of economics.