National Income And Theory Of Money

 Definition of National Income:

A term used in economics to refer to the bookkeeping system that a national government uses to measure the level of the country's economic activity in a given time period. National income accounting records the level of activity in accounts such as total revenues earned by domestic corporations, wages paid to foreign and domestic workers, and the amount spent on sales and income taxes by corporations and individuals residing in the country.

The total net value of all goods and services produced within a nation over a specified period of time, representing the sum of wages, profits, rents, interest, and pension payments to residents of the nation.(Economics) Economics the total of all incomes accruing over a specified period to residents of a country and consisting of wages, salaries, profits, rent, and interest

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Definition of Theory Of Money:

An economic theory which proposes a positive relationship between changes in the money supply and the long-term price of goods.  It states that increasing the amount of money in the economy will eventually lead to an equal percentage rise in the prices of products and services. The calculation behind the quantity theory of money is based upon Fisher Equation:

This theory originated in the sixteenth century as European economists noticed higher levels of inflation associated with importing gold or silver from the Americas. 

According to how the formula is derived, holding the transaction volume and velocity of money constant, any increases in the money supply will yield a proportional increase in the average price level.

Micro and Macro Economics

 Microeconomics (from Greek prefix micro- "μικρό" meaning "small" + "economics"- "οικονομια") is a branch of economics that studies the behavior of individual households and firms in making decisions on the allocation of limited resources.Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services

It considers the behavior of individual consumers, firms and industries.

Microeconomics is a branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold.Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the supply and demand of goods and services.

Microeconomics has been called “the bottom-up view of the economy”, or “how people deal with money, time, and resources.” One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses.

Microeconomics analyzes market failure, where markets fail to produce efficient results, as well as describing the theoretical conditions needed for perfect competition.

microeconomics includes a range of specialized areas of study, many of which draw on methods from other fields. Industrial organization examines topics such as the entry and exit of firms, innovation, and the role of trademarks. Labor economics examines wages, employment, and labor market dynamics. Public economics examines the design of government tax and expenditure policies and economic effects of these policies (e.g., social insurance programs). Political economy examines the role of political institutions in determining policy outcomes. Health economics examines the organization of health care systems, including the role of the health care workforce and health insurance programs. Urban economics, which examines the challenges faced by cities, such as sprawl, air and water pollution, traffic congestion, and poverty, draws on the fields of urban geography and sociology. Financial economics examines topics such as the structure of optimal portfolios, the rate of return to capital, econometric analysis of security returns, and corporate financial behavior. Law and economics applies microeconomics principles to the selection and enforcement of competing legal regimes and their relative efficiencies. 

Macroeconomics The study of the behavior an economy at the aggregate level, as opposed to the level of a specific subgroups or individuals (which is called microeconomics). For example, a macro economist might consider the industrial sector, the services sector or the farm sector, but he/she will not consider specific parts of any of these sectors. Factors studies include inflation, unemployment, and industrial production, often with the aim of studying the effect of government policy on these factors.

The branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets.

The field of economics is broken down into two distinct areas of study: microeconomics and macroeconomics. Microeconomics looks at the smaller picture and focuses more on basic theories of supply and demand and how individual businesses decide how much of something to produce and how much to charge for it. People who have any desire to start their own business or who want to learn the rationale behind the pricing of particular products and services would be more interested in this area.

Macroeconomics, on the other hand, looks at the big picture (hence "macro"). It focuses on the national economy as a whole and provides a basic knowledge of how things work in the business world. For example, people who study this branch of economics would be able to interpret the latest Gross Domestic Product figures or explain why a 6% rate of unemployment is not necessarily a bad thing. Thus, for an overall perspective of how the entire economy works, you need to have an understanding of economics at both the micro and macro levels. 

Economic Policies of India

Right Economic policies at the right time ,adapted by Indian Government .The government of India from time to time has taken up various policies to solve the economic Issues. The economic problems can be classified under many heads like unemployment , agricultural issues, industrial problems, etc. To eradicate these problems various policies were adopted at different times. The most people in India complain for not being able to get proper food. The reason is nothing but lack of income which had risen from unemployment and which is again connected with faulty agricultural system and industrial policies.

Unemployment has been an everlasting problem in India since per-Independence period. However, after the end of the British regime, the government of India took up various policies to eradicate the problem of unemployment. Of the some famous policies, Jawahar Roz gar Yojana (JRY) is one. During the Seventh Five Year Plan period, this scheme was launched. Its main objective was to create employment among the under employed and unemployed population of the villages. In rural areas, the standard of living is quite low. This plan aimed at improving the quality of life of the village folks.

In 1993-94, Prime Minister’s Roz gar Janaya (PMRY) was launched to increase the employment opportunities in the urban centers. It was aimed to give employment to one million and more people. The procedure to generate employment was the setting up of seven lakh small enterprises. This was done during the Eight Five Year Plan.

In the field of industry, the biggest policy taken up by the Government of India was the Industrial Policy in 1991. It was done in order to liberalize the economy. Industrial licensing was abolished in this policy. However, certain industry still needed permit. Some of them were coal and lignite, petroleum, motor cars, industrial explosives, chemicals, etc. This was done in order to strengthen the competitiveness of the Indian industries. 

We are sure that Indian government is working hard on the policies, but the point is why it is only on papers? Rarely their implementation is done is such a way that the Indian people reap benefits of those policies. If really Indian government was taking much effort in drawing lines between failure and success; I am pretty sure that by now half of the population would have raised above the poverty line and we would have achieved much more than we expect. 

No wonder government is working hard on economic policies but it should device strategies to enable all sections of society economically satisfied. moreover india is having much of its population below poverty line. this must be our first priority that no person is below poverty line. at the same time it should keep balance with other sections of economics. 

The economic policies of India are improving over the years but are not be sufficient to tackle all the odds. indie should device economic policies taking middle class people into consideration so that these can come up. india should also concentrate on poorer section of society so that there is more even development. 

Economic policies of India are not meant for the middle class and poorer class of India. they are mostly designed keeping the upper class in mind.. most often not even keeping inflation in mind because it mere affects the upper class.

      

Economic growth

Economic growth:

 Is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Growth is usually calculated in real terms, i.e. inflation-adjusted terms, in order to net out the effect of inflation on the price of the goods and services produced. In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment," which is caused by growth in aggregate demand or observed output.

Economic growth versus the business cycle:

Economists distinguish between short-run economic changes in production and long-run economic growth. Short-run variation in economic growth is termed the business cycle. Briefly, the business cycle is made up of booms and busts in production that occur over a period of months or years. The most recent example of a business cycle was the global boom starting in approximately 2002 that ended with the bust of 2008–9. As discussed in the article on the business cycle, economists attribute the ups and downs in the business cycle to a number of causes including: overproduction of goods followed by large inventories that can't be readily sold, over expansion of credit resulting in piling up of debt that inhibits purchasing; speculative bubbles, and shocks—like wars, political upheavals, and so on.

In contrast, the topic of economic growth is concerned with the long-run trend in production due to basic causes such as industrialization. The business cycle moves up and down, creating fluctuations in the long-run trend in economic growth

Historical sources of economic growth:

Increases in productivity are a major factor responsible for per capita economic growth, especially since the mid 19th century. Most of the economic growth in the 20th century was due to reduced inputs of labor, materials, energy, and land per unit of economic output (less input per widget). The balance of growth has come from using more inputs overall because of the growth in output (more widgets), including new kinds of goods and services Opening up new territories was considered a growth factor in the past, not being important since the late 19th century, except in a few areas areas such as Latin America, where forests were cleared in the 20th century for agriculture and in sub-Saharan Africa

 The power of annual growth:

The large impact of a relatively small growth rate over a long period of time is due to the power of compounding (also see exponential growth). A growth rate of 2.5% per annul leads to a doubling of GDP within 29 years, whilst a growth rate of 8% per annul (an average exceeded by China between 2000 and 2010) leads to a doubling of GDP within 10 years. Thus, a small difference in economic growth rates between countries can result in very different standards of living for their populations if this small difference continues for many years.

The effect of inequality on economic growth:

1.The classical theory.

2.The neoclassical theory

3.The modern theory

History Of Computer

As we know, computer is a big part of our life without computer we cant imagine good life and the best improvement in our life. Yes, computer is a big part of life our life but how is happens, If i talk about this, a lot of persons will be there who will have more idea and somebody will have less idea.

      Through my blog I am going to show what was the history of computer. How it developed, who was the first person, involves in the field. A lot of matters and technology will be there in this writing. If you sure having more idea related to these things kindly share with me or just try to develop your idea by reading this writing.

       Today, computer can be seen almost everywhere from shopping malls, schools, to almost every home. Computer are ad common place as pencils and have been marked in such a way as to make them available to almost anyone. It has gone through many stages of evolution and it is continually changing. New computers can become obsolete in as little as three years. To fully understand and appreciate the impact computers have on our lives and promise they hold for the future, it is important to understand their evolution.

Value of computer in our life

Computer today have gained access to every aspect of our life. The way computers have invaded our society is remarkable. The degree of use of computer in today’s world is so great, they have become very difficult to ignore anymore. Computer appear  to us in so many ways that many times, we fall to see them as they actually are. People are associated with a computer when they purchase their morning coffee at a vending machine. As they drive themselves to work. Computer control the traffic lights that so often hampered them in an attempt to speed the journey. Accept it or not the computer has invaded our life.

Business today relies on computer technology to assist them in almost every area of corporate life. Farmers rely on computers to plan planting and harvesting of crops. Every time you reserve space on an airplane or rail or check your bank statement or telephone friend, or do business through mobiles you are depending on computers to help you.

It is hard to imagine a world without computers. As a result of new technologies, especially in the past years, our modern society was introduce to different ways of communication through the computers. Some of these ways include the internet and e-mail.

Computers are changing the way people work and communication, they are become more and more a part of our everyday lives. Most people are surprised at how easy it is actually to learn to harness this power, they are even more surprised when they see all that can be accomplished with a couple of keystrokes and a swipe of the mouse.