Simple definition of economics

ECONOMICS

BASICS OF ECONOMICS

The term Economy refers to a region or a spatial system where people set for living | parallel goods and services are produced and consumed against transaction of Money.

 The term Economics refers to a study or | subject that deals with production, distribution, transportation and consumption of goods and services.

The word Economics comes from Greek word
'Oikonomia' used by Aristotle. The study of Economics first started in Greece.
Indians were also aware about economics and it we came to know about this fact from 'Artha |Sastrya' written by Kautilya. 
Father of Economics: Adam Smith.
Father of Classical Economics: Adam Smith. 
Father of Political Economics: Adam Smith.
Father of Neo-Classical Economics: Alfred Marshall.
Father of Modern Economics: John Maynard Keynes.
Fath of Economics: Karl Marx.
Father of Economics in India: Chanakya.
 Father of Indian Economic Reforms: P.V. Narasimha Rao.
Father of Indian Reforms: Monmohan Singh.

Branches of Economics:

Micro Economics: The term 'Micro' comes from Greek word 'Mikros' which mean small. It is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Individual income, individual budget, Individual investment, | individual demand etc. all are subject matter of micro economics.

INDIAN ECONOMY

Macro Economics: The term 'Macro' comes from Greek word 'Makros' which mean large. It is a branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy. Aggregate income, national budget, aggregate investment, aggregate demand etc all are subject matter of macro economics.

The terms 'Micro Economics' and 'Macro Economics' coined by Norwegian Economist Ragnar Frisch.

Classification of Economic Activities on the Basis of Nature -

Primary Economic Activities: Those economic activities by which human can fulfill his basic needs through production or extracting of resources under the control of environment are known as primary economic activities.

 Example Cultivation, Fishing, Grazing, mining, hunting, gathering etc.

Characteristics :

a) Directly controlled by nature.

b) Those fulfill basic needs of human.

c) Those activities are mainly human labour intensive and rural based. 

d) Those activities are land oriented.

e) It is the oldest type of economic activity.

f) Workers who engaged in this type of economic activity are known as 'Red

Collar Labour'.

Secondary Economic Activities: By those economic activities with the help of instrument and technology human increase the quality, utility and price of those products which they get from primary economic activities and prepare final products.

Example: All types of manufacturing industries, processing industries etc.

Characteristics: 

a) Those economic activities create final product which is ready to use.
b) Those are mechanical power, instrument and technology based.
c) Those are urban based activities. 
d) Those are capital intensive activities. 
e) Workers who engaged in this type of economic activity are known as 'Blue Collar
Labour'.

Tertiary Economic Activities: 

To keep the activities of primary and secondary sectors active and keep going entrepreneurs or any organization has to provide some kind of services. Those services are known as Tertiary | economic activities. Tertiary sector is also | known as service sector.
 Example: Transportation, communication, trade, insurance, banking, health services, advertisement, education, tourism etc.

Characteristics :

a) It creates a link between primary and secondary economic activities.
b) Through those economic activities no goods are produced only services are provided.
c) It increases new employment opportunity.
d) Those economic activities are developed infrastructure oriented.
e) Workers who engaged in this type of economic activity are known as 'Pink Collar Labour'.

Quaternary Economic Activities: 

When activities of tertiary sector become more developed and advanced then those activities are known as quaternary activities.

Example Information Technology, research works, administrative works etc.

Characteristics

a) Those economic activities evolved in first half of twentieth century.
b) This sector is based on knowledge,  intelligence and merit of human.
c) Mainly centralized in developed countries. 
d) Those economic activities create new | markets and demands.
e) Workers who engaged in this type of | economic activity are known as 'White Collar Labour'.

Quinary Economic Activities: 

Some special services depend on high skill, experience and knowledge are known as quinary economic activities.
Example Chief Executive Officer, scientist doctor, engineer, law consultant etc.

Characteristics : 

a) This is the apex level of economic activities.

b) This sector is mainly experience, skill, intelligence and knowledge based.

c) In this sector income of workers is maximum compare to other economic sectors. is highly developed d) This sector infrastructure oriented.

e) Workers who engaged in this type of economic activity are known as 'Golden
Collar Labour'. Economic Terms:

Economic Terms

Utility : It is the measurement of "useful-ness": that a consumer obtains from any good of

service. The term denotes the want satisfying power of any product or services.

Wants It is defined as desires that can be satisfied by consuming a good, service or leisure activity.

Goods and Services: 

All the materialistic elements or non materialistic elements which are able to satisfy the demands of humans those materialistic elements are known as goods and non-materialistic elements are known as services.

Consume: Ending of utility of any goods or services is known as consume.
Value: It is a measure of the benefit provided by a good or service to an economic agent.
Price: Price is the amount of money that has to be paid to acquire a given product.
Savings: The difference between total income and total expenditure is known as savings.
 Investment: It is the amount purchased per unit time of goods which are not consumed at
the present time and used for increase of total capital.

Optimum Level: 
All the economic factors have their own limitations and within this limitation those factors work towards fulfill certain objective. At which level the objective is fulfilled this level is known as optimum level.