The Main Objectives Of Economic Development

Economic development is a process aiming at the promotion of the real national income of a country. It refers to the better utilization and fl improvement of the resources in production process in different sectors of underdeveloped countries. Under – developed countries choose different objectives and initiate development for realizing the objectives. The following are some important and main objectives of economic development. 1. Increase in the level of national income: The main objective of economic development is the increase in the level of national income. The level of national …

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What Are The Characteristics Of Developing Countries

characteristics of developing countries

It is not easy to define clearly an underdeveloped or developing economy. So to find the characteristics of developing countries will not be precise. Different economists have defined an underdeveloped (developing) economy in different ways. The U.N. experts have defined an underdeveloped (developing) country as “one in which per capita income is low when compared with the per capita income of U.S.A, Canada, Australia and Western Europe”. According to Indian Planning Commission, an developing or underdeveloped country is one which is characterized by the un-utilization of manpower on one hand …

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Is Economics A Positive Or Normative Science

Meaning of Positive science : Positive science mainly explains ‘what is’. It deals with things as they are and explains causes and efforts without making value judgements whether it is right or wrong. In other words, Positive science only describes things as they actually are. It is concerned with the actual. It deals with theoretical aspects. Thus positive science may be called as pure science. Meaning of Normative Science : Normative science is concerned with “what ought to be or should be”. It is concerned with the ideals. It explains …

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Merits and Demerits Dynamic Analysis In Economics

Economic Dynamics is concerned with the changes in the expected values of the variables. For example change in price affects the quantity demanded and supplied of a commodity. The extent of the impact of price on the demand and supply of a commodity depends upon the extent of change in the other variables. Merits and Demerits Dynamic Analysis are discussed below. Merits Of Dynamic Analysis: Economic dynamics has the following merits Realistic: Economic Dynamics involve no friction. It helps us to understand how the economy develops at a particular time …

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Merits and Demerits Of Static Analysis In Economics

Economic statics denotes the relationship between two economic variables that relate to the same point of time. It is a timeless analysis. It assumes the simultaneous adjustment of indices. It gives only a stand still picture of an economy, a vision of the movement, disappearing as soon as it makes its appearance. Economic Dynamics is concerned with the changes in the expected values of the variables. Merits and Demerits Of Static Analysis are discussed below. Merits and Demerits Of Static Analysis: Merits Of Static Analysis: Economic statics has the following …

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Difference Between Static And Dynamic Analysis In Economics

August Compte was the first person who used the words ‘Static’ and ‘Dynamic’. The two words used in Economics are drawn from Mechanics. In Economics, these two words are used for the first time by J.S. Mill. The two concepts (Static Analysis And Dynamic Analysis) are analyzed as follows : Economic Statics : The term ‘Statics’ is derived from the Greek word ‘Statike’ which means ‘bringing to a stand still’. This term denotes several meanings in several sciences. For instance, in Economics, it means a state of the movement at …

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Scope Limitations And Importance Of Macroeconomics

importance of macroeconomics

Macroeconomics : The term ‘Macro’ is derived from the Greek word ‘Makros’ which means ‘Large’. Professor Ackley described that Macro Economics deals with economic affairs in large. It is concerned with the overall dimensions of economic life. Marco Economics the study of aggregates of averages covering the entire economy. These aggregates include several items like total employment, national income, national output, total investment, total consumption, general price level, etc. Importance Of Macroeconomics is huge because it helps us understanding economic policies. We have to understand the importance of Macroeconomics because …

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Scope Limitations And Importance Of Microeconomics

importance of microeconomics

Microeconomics and Macroeconomics are two approaches forwarded by economists. These approaches help us to study the nature of economic problems. It was Ragnar Frisch who used these two terms for the first time in Economics. Before discussing the importance Of Microeconomics, let us know what the Microeconomics is. Micro Economics : The term ‘Micro’ is derived from the Greek word ‘Mikros’ which means ‘ small’. Micro Economics is the study of economic behavior of human beings in their individual and group capacities, Professor Bouldings described Microeconomics as “the study of …

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Is Economics A Science Or An Art – The Complete Anatomy

Science means a systematized and organized study of knowledge. It consists of certain generalizations, principles- and laws which establish relationship between causes and effects of a phenomenon. Economics in this sense is called a science. Economics as a Science : Economics is considered as a science due to the following reasons : 1. Economics has its own laws and principles : Economic phenomena are analyzed carefully. Principles influencing these phenomena a are discussed in a clear-cut manner. The various principles and laws of Economics like the principles and laws of …

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Merits And Demerits Of Inductive Method In Economics

Inductive method (Inductive Reasoning) is an important method used by the economist for making conclusions on economic phenomena. It involves the process of reasoning from particular facts to the general principles. When compared to deductive method, inductive method is considered to be the more realistic, concrete and accurate method. It helps in future inquiries and acts as a guide for future inquiries. It helps in future investigation through discovery and evidence of general principles. Under this Inductive method (Inductive Reasoning) the economic phenomena are tested and general conditions are drawn …

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