Top-Rated Free Essay

ECONOMICS HONOURS CLASSES IN KOLKATA

Powerful Essays
A
..define macroeconomics?
Ans. Macroeconomics considers the performance of the economy as a whole. Many macroeconomic issues appear in the press and on the evening news on a daily basis. When we study macroeconomics we are looking at topics such as economic growth; inflation; changes in employment and unemployment, our trade performance with other countries (i.e. the balance of payments) the relative success or failure of government economic policies and the decisions.

..give examples of macroeconomic variables.
Ans. examples of macroeconomic variables are
a. National income
b. Inflation
..mention any 2 differences between macroeconomics and microeconomics.
Ans.

…define an economic agent ?
Or what do you mean by a player in an economy?
Ans. a person, company, or organization that has an influence on the economy by producing, buying, or selling is called an economic agent or a player in an economy.
…define durable consumer goods?
Ans. Long-lived goods bought for final consumption and whose uses are expected to be enjoyed over a period longer than (usually 1 year) used in national income accounting is called consumer durable goods.
Examples of durable goods are automobiles, appliances, furniture, jewelry, consumer electronics and sporting goods.
..define non-durable or single use consumer goods.
Ans. Consumer goods which are consumed in the sense that they can only be used once or very few times and is not expected to last over an accounting year is called non-durable or single use consumer goods. Example: food, drink, tobacco.

…define intermediate goods.
Ans. A good (or service) that is used as an input or component in the production of another good. Intermediate goods are combined into the production of finished products, or what are termed final goods. Intermediate goods will be further processed before sold as final goods.
Examples of intermediate goods include sugar, car engines, steel and chlorine.

…whay do you mean by capital goods?
Ans A capital good (sometimes simply capital in economics) is a durable good that is used in production of goods or services. Capital goods are acquired by a society by saving wealth which can be invested in the means of production.
Example cars and furnitures which can be used for both private or business purpose.
…define a final good.
Ans. A good or service that is consumed by the end user and does not require any further processing.

example; tires for automobile industry or copper which can be used to make some further goods.

..define stock and flow variables.

Ans. A stock variable is measured at one specific time, and represents a quantity existing at that point in time which may have accumulated in the past. Example – money and wealth.
A flow variable is measured over an interval of time. Therefore a flow would be measured per unit of time (say a year). Flow is roughly analogous to rate or speed in this sense. Example- government deficit, government wealth.

..what is the difference between stock and flow variables?
Ans.
Stock variable
Flow variable
1. A stock variable is measured at one specific time, and represents a quantity existing at that point in time which may have accumulated in the past.
2. A stock variable has no time dimension.
1. A flow variable is measured over an interval of time. Therefore a flow would be measured per unit of time (say a year). Flow is roughly analogous to rate or speed in this sense.
2. A flow variable is related to time and expreessed in terms of time period.

…define the following: a. investment, b.gross investment , c. inventory investment, d. fixed investment, e. net investment.
Ans. A. Investment: the process of adding to stocks of real productive assets is called investment.
For example accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories.
b.gross investment: gross investment is defined as the amount a company invests in business assets that does not account for any depreciation. The gross figure more accurately reflects the company's actual financial commitment to an asset from which it can derive a return on investment.
c. inventory investment: Inventory investment is a measurement of the change in inventory levels in an economy from one time period to the next. This measurement is often a good indicator for the future direction of an economy, although it is not always accurate.

d. fixed investment: investment in fixed capital or to the replacement of depreciated fixed capital is defined as fixed investment.
e. net investment.-the net increase in the amount of capital which is expressed as gross investment minus an estimate of capital consumption is defined as net investment.

…define capital loss.
Ans. The loss incurred when a capital asset (investment or real estate) decreases in value is defined as capital loss. This loss is not realized until the asset is sold for a price that is lower than the original purchase price.
…what is depreciation allowance?
Ans. The sum of money which is deducted from income each year in order to fund the loss due to depreciation is called depreciation allowance.

B.
..explain the nature and scope of macroeconomics. Ans. Nature of macroeconomics: Macro-economics studies the aggregates of the entire economy. The nature of macro-economics can be understood with the help of the following aspects:
i) DETERMINATION OF NATIONAL INCOME AND EMPLOYMENT: Macro-economics deals with aggregate demand and aggregate supply that determines the equilibrium level of income and employment in the economy. The level of aggregate demand determines the level of income and employment. Macroeconomics also deals with the problem of unemployment due to lack of aggregate demand. Moreover, it studies the economic fluctuations and business cycles. ii) DETERMINATION OF GENERAL PRICE LEVEL: Macroeconomics studies the general level of price in an economy. It also studies the problem of inflation and deflation. iii) ECONOMIC GROWTH AND DEVELOPMENT: Macroeconomics deals with economic growth and development. It studies various factors that contribute to economic growth and development. vi) DISTRIBUTION OF FACTORS OF PRODUCTION: Macroeconomics also deals with various factors of production and their relative share in the total production or total national income
*Scope of macroecomics: Macroeconomics occupies a significant place in economic analysis and has a lot of theoretical and practical importance. The importance of macro-economics can be understood from the following points:

i) POLICY FORMULATION: Macroeconomics plays a very important role in formulating economic policies. Since Government intervention in economic affairs is indispensable in the present economic scenario, the knowledge of aggregates is of great importance in the framing as well as the implementation of economic policies of the nation. ii) BASIS FOR MICROSTUDY: Macroeconomics provides the basis for microeconomic analysis as the study of aggregates helps to understand and verify the behaviours of individual units. iii) MULTI-DIMENSIONAL STUDY:
~Macroeconomics has a very wide scope and covers multi-dimensional aspects like population, employment, income, production, distribution, consumption, inflation, etc. This is very helpful in controlling fluctuations in these factors. vi) NATIONAL INCOME:
Macroeconomics studies national income accounting which helps to understand the distribution of income among different groups of people. It is also instrumental in forecasting the level of economic activity.
v) SPECIAL GROWTH MODELS:
Macroeconomics has been useful in developing special growth models. These growth models are applied for economic development because the economics of growth is, in essence, the study of macroeconomics. vi) MONETARY PROBLEMS:
Macroeconomics has special significance in studying monetary problems that adversely affect the economy.
In fact, macroeconomics focuses on the problems of inflation and deflation and their solution by adopting monetary, fiscal and direct control measures.

You May Also Find These Documents Helpful

  • Powerful Essays

    economics honours

    • 2956 Words
    • 12 Pages

    DC-1 Sem-II Chapter: Covariance and Correlation Content Developers: Vaishali Kapoor & Rakhi Arora College / University: Rajdhani College (University of Delhi) Institute of Lifelong Learning, University of Delhi 1 Table of Contents 1. Learning outcomes 2. Introduction 3. Covariance a. Discrete Random Variable b. Continuous Random Variable c. Special cases 4. Correlation 5. Appendix 6. Summary 7. Exercises 8. Glossary 9. References Institute of Lifelong Learning, University…

    • 2956 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Kolkata

    • 1309 Words
    • 6 Pages

    Visit St Paul’s cathedral, close to BBD, beyond Park Street, Kolkata, was built in 1847, in Gothic Revival style with stained glass windows and two frescoes in Florentine Renaissance style, partly rebuilt after the 1934 Calcutta Earthquake. The building itself stands on the "island of attractions" in Kolkata - beside the Victoria Memorial, Nandan, Rabindra Sadan theatre complex, and the Birla Planetarium. Victoria memorial, BBD, Kolkata, was built in 1921, memorial building dedicated to Victoria…

    • 1309 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Kolkata

    • 1256 Words
    • 6 Pages

    Kolkata-An Enigma wrapped in Mystery. When I started writing this article, I felt like what can I write about the city that hasn’t been said before? why is the city so different from other cities and after a lot of pondering, I found the answer .Its different because it’s a city with a Soul of itself whose pulse is its people, with all their virtues, scruples and humility. There’s a famous saying, that once you visit Kolkata and imbibe its serenity and bask in its aura, you can’t help but admire…

    • 1256 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Air Pollution in Kolkata – an economic analysis According to statistics released by the Scientific and Environmental Research Institute, quoting government figures, Kolkata had a suspended particulate matter (SPM), the measure of pollution, at a steep 511 compared to Delhi's 234 and Mumbai's 322. That earns Kolkata the crown for the most polluted city in the country – a distinction reserved for New Delhi for last few years. Mumbai is the second most polluted city after Kolkata in terms of air pollution…

    • 1142 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Fashion Economic Classes

    • 2099 Words
    • 9 Pages

    Maya Murphy Webb AP Seminar Pd 2 16 January 2015 Fashion Influences on Economic Classes Coco Chanel once said, “Fashion changes, but style endures.” Over time fashion styles went from tight corsets with long dresses in Victorian times to the chic, skinny jeans and basic T­shirt style. Fashion has become an outlet that has placed morals and standards for womens’ clothing in America throughout history. In order for women to purchase clothing, money was an element that separated wealthy fashions from poor fashions…

    • 2099 Words
    • 9 Pages
    Better Essays
  • Good Essays

    The City of Kolkata

    • 397 Words
    • 2 Pages

    I live in the city of Kolkata- the city of joy. My city is one of the four metropolitan cities of my country-India. It is a big city with a huge population. Kolkata is the city of my birth and no doubt it is my favorite city. Kolkata, like many other metropolitan cities, have a number of features, some of which will really attract newcomers while others will keep them away. Kolkata is a city- full of life. Here, unlike any other city, people are cooperative and one can enjoy one's joy and happiness…

    • 397 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Fading Kolkata

    • 388 Words
    • 2 Pages

    http://articles.timesofindia.indiatimes.com/2013-02-18/kolkata/37159460_1_saviours-and-friends-kolkata-municipal-corporation-trees Misplaced priorities hack Kolkata's green cover to an all-time low Prithvijit Mitra, TNN Feb 18, 2013, 01.58AM IST KOLKATA: The government may be working on a war footing to beautify the dividers and pavements by planting decorative shrubs, but it seems the big bosses are missing the bigger picture. For, lacks of planning and ruthless chopping of trees have forced…

    • 388 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Kolkata - Essay

    • 818 Words
    • 3 Pages

    KOLKATA The City of Joy as has been named by Dominique La Pierre has many different histories surrounding its birth.The theory that says that Job Charnok an English man was the father of Kolkata, changed with a high court ruling stating that Kolkata existed from the times of Mansa Mangal Kabya and Saborno Raychaudhuri one of the rich Babus of Kolkata.Some say that Kolkata got its name from the activities that the place was famous for.The place was famous for its Lime Kilns and the local name for…

    • 818 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    A Life Called Kolkata

    • 505 Words
    • 3 Pages

    winter morning... The feeble sunshine was trying to warm my bedroom...The chirps of the morning birds started entering into my ears... From under the quilt I searched for the mobile phone and switched on one of the Bengali FM radio channels...The Kolkata special winter morning just started... At around half past 6 o'clock, when the morning mist was just fading away, we sat down with cups of hot tea...We started playing the Gayatri Mantra...We looked out of the window... The momentum of the nearby…

    • 505 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    honour killing

    • 1948 Words
    • 8 Pages

    TRENDS IN HONOUR KILLING INTRODUCTION: To understand completely or in view of the trends in Honour Killing, in order to remove the epidemic of honour killing from the society, one should have complete knowledge and understanding of what makes these murders unique. Honour killing is an ancient ritual in a modern world. in simple terms it can be defined as the killing of a relative, especially a girl or a women, who is perceived to have brought dishonor on the family. Victims of honor killings…

    • 1948 Words
    • 8 Pages
    Powerful Essays