Basic Concepts of Economics

Comprehensive vocabulary flashcards covering basic economic definitions, key economists, scope of economics, and Indian economic challenges based on the lecture notes.

Economics

Derived from the Greek words 'Oikos' (family) and 'nomos' (rules), it is the study of the economic activities of an individual as a part of society.

Micro Economics

Derived from the word 'Mikros' meaning small, it deals with the economic behavior of individual units like a person, organization, consumer, or producer.

Macro Economics

Derived from the word 'Makros' meaning large, it studies the behavior of an entire country or all consumers and producers, covering topics like national income and industrialisation.

Adam Smith

Considered the father of economics; he defined it as the "science of wealth" in his 1776 book, 'An Enquiry into the Nature and Causes of the Wealth of Nations'.

Alfred Marshall

A Cambridge economist who defined economics based on principles of welfare in his 1890 book, 'Principles of Economics'.

Lionel Robbins

Economist who provided the 'scarcity' definition in 1932, describing economics as the science studying human behavior as a relationship between ends and scarce means with alternative uses.

Consumption

Activities that lead to the satisfaction of human wants.

Production

The creation of useful goods or services involving the four factors: land, labour, capital, and organisation.

Jonbeel Mela

A fair in the Morigaon District of Assam that serves as an example of the barter system among tribes like the Karbi, Khasi, and Tiwa.

Goods

All commodities and services that have the power to satisfy human wants; categorized as tangible or intangible, and free or economic.

Utility

The power of any good or service to satisfy human wants.

Wealth

Goods that possess four specific characteristics: utility, scarcity, transferability, and externality.

Demand

The desire for a commodity backed by the power (ability) to purchase it.

Market

An arrangement where buyers and sellers buy and sell goods directly or indirectly, rather than just a specific physical place.

Capital

The means or appliances that help in further production, such as machinery or tools.

Investment

A 'flow' concept referring to when capital is actively used for the purpose of production.

National Income

The money value of all goods and services produced in a country within a financial year ($April\text{ 1st}$ to $March\text{ 31st}$).

Per Capita Income

The average income of the people of a country, found by dividing total national income by the total population.

Poverty Line

A cut-off point defined by the Planning Commission of India as a minimum of $2400$ calories per person/day for rural areas and $2100$ calories for urban areas.

Density of population

The number of people per square kilometre; for India (2011 Census), it was $382$ and for Assam it was $397$.

Sex ratio

The number of females per $1000$ males; India's 2011 ratio was $940$.

Seasonal Unemployment

A type of rural unemployment where individuals are only employed during certain seasons, common in agriculture.

Disguised Unemployment

A situation where more people are employed than are actually needed for a job, making their marginal contribution zero.

Inflation

A situation of persistent and appreciable rise in the general price level, often described as "too much money chasing too few goods."

Demand-pull Inflation

Inflation caused by an increase in demand for commodities without a corresponding increase in supply.

Cost-push Inflation

Inflation caused by a rise in the cost of production due to factors like increased wages, profits, or taxes on commodities.