Meaning and Types of Economics 8th Notes KSEEB Social Science
→ We use various things in our daily life. There things are called goods and services.
→ Economy refers to the nature of organisation of economic activities in a society.
→ An Economy may be described as a man made organisation for the satisfaction of human wants.
→ A.J. Brown defines economy as “a system by which people get a living”.
→ Economy consists of individuals, economic institutions and government and their interactions.
→ Economy is a dynamic entity’ which is continuously changing.
→ Production, consumption and investment are the crucial activities of an economy. Individuals are both producers and consumers.
→ Modern Economic system is complex and there are many institutions to regulate the activities of the individuals. Ex: RBI, world Bank, WTO, IMF Etc.
→ In capitalistic Economy, the means of production are owned by the individual.
→ When productive resources are owned and controlled by the government to promote the ever all interests of the society.
→ A Mixed Economy combines the good features of both capitalism and socialism.
→ India is a classic example of mixed economy with both public and private sectors.