1. Amitabh Patnaik

2.  Introduction to Economics
 Micro and Macro Economics
 Concept of Plant, Firm And Industry
 Positive and Normative Economics
 Introduction To Managerial Economics

3.  Economics is the study of men as they live,
behave, move and think in the ordinary
business of life. Economics is the essence
pertains to an understanding of life’s
preoccupation.
 Economics, as a social science studies the
human behaviour as a relationship between
numerous wants and scarce means having
alternative use.
 It teaches the art of rational decision making,
in economising behaviour to deal with the
problem of scarcity.

4.  The branch of economics which is concerned
with the analysis of the behaviour of the
individual economic unit or variable.
 It is the study of particular firm, particular
household, individual price, wages, income,
individual industries, particular commodities.
 It deals with individual decision making and
problem of resource allocation. It examines how
individual consumer and producer behaves.
 Often called as price theory.

5.  It serve as a basis of allocation.
 It serve as a basis of prediction
 It serve as a guide for business/production
planning
 It teaches the art of economising
 It explains the price determination
 It has a direct relevance in business decision
making.
 It is useful in determination of economic policies
 It serve as a basis of welfare economics.

6.  Theories are static
 It studies only parts and not the whole
economy.
 it has an unrealistic assumption of full
employment.
 It misleads when one tries to generalise
from the individual behaviour
 By assuming independence of want and
production in the system it failed to
consider their dependence effect.

7.  Branch of economics which deals with the
aggregate behaviour of the economy as a
whole.
 It looks at the total size, shape and
functioning of the whole economy.
 It is a study of very large, economy-wide
aggregate variable like national income,
total saving, total consumption money
supply, price level unemployment etc.

8.  Explains the working of the economic system as
a whole
 It is useful to the planner for preparing economic
plans for the country’s development
 Its knowledge is indispensable for the policy
makers for formulating the macroeconomic
policies.
 It is helpful in international comparison.
 It explains economic dynamism and intricate
relationship among macroeconomic variable,

9.  It ignores individual behaviour
 It has a tendency of excessive generalisation
 It is not easy to get correct and complete data
 Macroeconomic prediction are not fully reliable.

10. Industry
Firm
Plant

11.  Itis a technical unit
 With technical sphere, a plant enjoys
considerable autonomy
 A plant is controlled by a single firm
 Technically similarity in the production
process of goods manufactured within a
plant

12. A firm may own one or more than one
plant
 Firm exercises a unified control over its
plant
 Organises resources and plan their uses
 It is a separate legal entity
 A firm, in economic theory, undertakes
production to maximise profits.

13.  AnIndustry is a group of firms but not easy
to decide what types of firm should be
grouped together to make a particular
industry

14.  Positive economics refers to an analysis of
fact.
 In positive economics our goal is to describe,
as accurately as possible. When economist
describe the economy, make prediction about
how the economy will change, or explains the
effect of different alternative , they are
involved in positive economics.
 Most positive statements are testable
 It deals with cause effect relationship.
 Considered as descriptive analysis.

15.  Analysis based on value judgment is
considered as normative economics.
 It is focused on what we believe should be
or ought to be.
 In this we make value judgment and state
our opinion rather than confining ourselves
to a description of facts
 Normative economics are not testable.
 Considered as prescriptive analysis.

16.  It is an evolutionary science , it is a journey
with continuing, understanding and
application of economic knowledge-
theories, models, concept and categories
them in dealing with the emerging
business.
 It is essentially an applied economics in
the field of business management. It
pertains to all economic aspects of
managerial decision making