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Economics and the Economy: an Introduction - Short Trick

Thinkers, ideologies, exceptions to demand and supply, factors and sectors — one sentence each

0 trick sentences4 pairs6 parts
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How to read
  • Guru Ram Each coloured word = one name in the list, shown below in the same colour
  • Panda Two colours in one word = two names
  • ➜ Order the numbered order matters · ⇄ Any order no order
1

Branches of Economics

Micro against macro, and the branches whose names do not say what they study.

Pairs

Micro and macro

1 sentences

Mini looks at one shop but Manoj looks at the whole country.

Micro economics · Macro economics=Micro — one person, one firm, one worker; how price is fixed in one market · Macro — the whole economy: national income, inflation, employment, poverty, the balance of payments (indicators GDP, unemployment rate, inflation rate)

They are not two subjects but two zoom levels on the same thing.

Pairs

Branch — the question it answers

3 sentences

Wendy shares her wealth with the whole society.

Welfare economics=Moved the focus from wealth alone to the welfare of the whole society — the poor, the elderly and children included

Indu compares prices before she buys.

International economics=Guiding principle — comparative advantage · trade, currencies, the balance of trade and of payments

Beena sometimes buys without thinking.

Behavioural economics=How social, mental and emotional factors change economic decisions — why people sometimes decide in ways that are not sensible

The other branches explain themselves — development, environmental, information and demographic (population) economics.

2

Thinkers and Ideologies

Book and thinker, communism against capitalism, the years of communism’s rise and fall, and the communist countries of today.

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3

Types of Economy

Four types by the role of government, their examples, and how a closed economy is recognised.

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4

Demand and Supply

The six exceptions to the law of demand, the four exceptions to the law of supply, and which policy treats which imbalance.

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5

Factors of Production

The four factors and their rewards, and the formula for market price.

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6

Sectors, Stages and Classification

The three stages of development, quaternary and quinary, the mining exception, agriculture’s shrinking share, and which body classifies what.

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Read the full chapter for the complete notes — a trick helps you remember the list; understanding comes from the notes.