Meaning and Scope of Economics
Definition of Economics:
1. Wealth Centered Definitions:
a) Adam Marshall, “Economics is concerned with the inquiry into the nature and causes of wealth”.
b) J.S.Mills, “Economics is the science of wealth in relation to man” 2. Welfare Centered Definitions:
a) Marshall, “Economics is the study of man’s actions in the ordinary business of life; it enquires how he gets his income and how he uses it”.
b) Cannon, “Economics is the study of the causes material welfare”. 3. Scarcity Centered Definitions:
a) Stigler, “Economics is the study of principle governing the allocation of scarce means among competing ends when the objective of allocation is to maximize the attainment of the ends”. b) Prof. K.G. Sethi,” Economics studies human behavior concerned with changes and growth in capacity to produce in relation to (changes and growth) demand.” Scope of Economics:
1. Micro Economics: An analysis of the behavior pf any particular decision-making unit, such as a firm, an industry, a consumer, a consumer constitutes micro economics. Study of individual decision making unit
Study of economic flow- flow of resources, factors of production, flow of goods and services from business form to households
Price Theory-which explains the composition or allocation of total production. 2. Macro Economics: The analysis of economic system as a whole is called Macro Economics. Concerned with aggregates and averages of the entire economy such as National Income, Aggregate output, Total Employment, Total Consumption, Savings and Investment, Aggregate Demand, Aggregate Supply, general level of prices.
Income Theory- which explains the level of total production and why the level rises and falls. b)
Importance of Economics in School Curriculum and life
Importance of Economics in School Curriculum and life
1. Helpful to tackle economic problems
2. Means of livelihood
3. Generating practical attitude
4. Enrichment of knowledge through study of economics
5. Knowledge of other countries
6. Use in practical activities
7. Knowledge of Democratic set-up.
8. Development of National Consciousness
9. Liberal economic attitude
10. Development of International outlook.
11. Proper use of natural resources
12. Material well being
13. Economic interdependence
Aims and objectives of teaching Economics at Secondary and Higher Secondary level
Aims of teaching Economics:
Knowledge of Economic conditions and problems in India
Knowledge of principles and theories of economics.
Development of economic consciousness
Knowledge of economic structure of the government
Practical use of money
Develop broad and international outlook
Objectives of teaching economics at Secondary Level:
To acquaint students with the economic problems and solve the problems at local and national level To familiarize students with basic ideas in economics
To foster an urge among students for effective participation. To prepare students to cope with stress and strain.
To develop an understanding of the nations resources
To develop among students a favorable attitude
To help the students to understand that various sectors must develop equally. To develop among students a passion for social justice.
To help students to acquire skills.
Objectives of teaching economics at Higher Secondary Level:
1. To acquire the knowledge of facts, terms, concepts, trends, principles, problems and processes of economics.
2. To develop understanding of trends, principles, processes, etc in economics. 3. To apply the acquired knowledge and its understanding to unfamiliar situation. 4. To acquire economic skills like drawing maps, charts, tables, diagrams, graphs, etc. 5. To develop interest in the subject and problems related to the economic life of the people. 6. To develop desirable attitudes necessary for developing a broader outlook.
Correlation of Economics with Commerce, Mathematics, History, Geography, Science, Languages.
Meaning of correlation:
Technique which establishes reciprocal relationship between different subjects of the curriculum for the better and clear understanding of the subject under discussion. Acc. To Raymont, "No subject is ever well understood and no art is intelligently practiced, if the light which the other studies are able to throw upon it is deliberately shut out.” Knowledge is one invisible whole, which cannot be divided into water tight compartments. Reasons for correlation:
Stability of knowledge
Economy of knowledge
Development of interest in the subject
Makes the burden of the curriculum light
Development of human and social qualities
Types of Correlation:
1) Incidental Correlation: correlation between subjects occurring by chance not planned. 2) Planned Correlation: It’s a deliberate attempt to correlate subjects. There are two types of planned correlation:
a) Vertical Correlation- correlation of economics with various branches of economics b) Horizontal correlation- correlation of economics with other subjects c) Correlation with life.
Correlation of Economics with Commerce:
Main aim in Commerce is
to study about business, industry, trade and organization study all activities beginning from production and leading up to distribution study of trade, banking, export, import, book-keeping, etc All the above are closely associated with economics. Economics and commerce cannot be studied separately. They are inter-twined. Through the knowledge of commerce, it is possible to run the economy of a country more efficiently.
Correlation of Economics with Mathematics:
There exists very close relationship of economics with mathematics particularly statistics. Most of the economic theories are propounded on the basis of statistical data. In economics we make use of various mathematical symbols. To formulate theories, Geometry and Algebra are widely used. Without statistics the knowledge of economics remains incomplete. Marshall said, “Statistics are the straw out of which, I like every other economist have to make bricks”. To draw graphs, sketches, and tables the teacher of economics depends on mathematical knowledge.
Correlation of Economics with History:
Both subjects are social sciences.
After Industrial Revolution production of quantity and quality of goods improved. Also resulted in competitive business for marketing of finished goods. Gave rise to infighting among various developed European powers which resulted in huge wars and new powers emerged. First and Second World Wars were fought for economic considerations. To get knowledge of various economic factors that were responsible for various historical events, we have to depend on history.
History tells about the economic development of various countries. When we read a particular period in history, we learn about economic conditions prevailing in that period.
The beginning of medium of exchange such as gold coins and others are studied in history. Correlation of Economics with Geography:
In economics we study about various goods. The production is governed by various geographical factors such as nature of soil, climate.
Economic conditions of a country depend to a large extent on its geographical conditions. India could become a great power in ancient times because of its geographical situation and other conditions.
Agriculture, industry and other economic activities depend to a large extent on geographical factors.
Availability of raw materials means of transport and types land (plateaus, deserts, mountains, etc) are considered in major decisions of business.
Certain industries and trade develop in a particular place when geographical conditions favor them.
Correlation of Economics with Science:
Teaching is a technical job. It requires certain qualities of head and heart. Every teacher must familiarize herself/ himself with the time honored maxims of teaching which are evolved as a result of long experience in teaching and research in educational psychology. Maxims have been framed keeping the child in the forefront.
e) Maxims of Teaching
Known to Unknown
Knowledge serves as a hook on which new knowledge can be hanged. New knowledge should not be entirely new for the child. It should be linked with the existing knowledge of students.
E.g. Teach Mixed economy after teaching Capitalism and Socialism. ii)
Simple to Complex
Simplicity and complexity of the subject should be determined from the view point of the learner.
It smoothen the learning process.
It develops self-confidence in students.
E.g. teach concept of banks first and then teach types of banks. iii)
Whole to Part
Lesson to be taken as a whole and then analysed into parts. It generates familiarity in the child for learning.
Helps teachers to teach better and students to grasp faster. E.g. first discuss about National Income and then domestic income, agricultural income, etc. iv)
Concrete to Abstract
Concrete things can be visualized, but abstract things are only imaginable. Froebel said, “Our lessons should begin in concrete and end in the abstract”. It is difficult to teach abstract concepts first as the children are likely to forget the same. E.g. To explain the concept of Diminishing Marginal Utility give water to a student to drink and ask other students to observe how is urge for drinking water decreases gradually at that point of time.
Particular to General
Examples and facts should be presented to students before giving them the general rules or principles.
Study of particular facts should lead the children themselves frame general rules and generalizations
Same principle adopted in inductive method of teaching
E.g. discuss adulteration of different products, cheating done to consumers and then teach the concept of Consumer Protection.