E - Content- Economic thoughts
NSS TRAINING COLLEGE OTTAPALAM
ICT- WORKSHOP
DIGITAL TEXT
Name of the teacher: Athira.k
Date: 20/5/22
Department: social science
Class: 8 th
Subject: social science
Duration: 40 minutes
Unit: Economic thoughts
Topic : Economic thoughts
OBJECTIVE
The study of Economic thoughts helps,
1.To Understand the economy , economic activities and factors of production.
2.To identify the major problems facing by an economy
3. To understand and distinguish different economic thoughts and economists.
E-content
relation to the composition of total output in the economy. Since resources are scarce, the society has to decide about the goods to be produced: wheat, cloth, roads, television, power, buildings, and so on.
Once the nature of goods to be produced is decided, then their quantities are to be decided. How many tonnes of wheat, how many televisions, how many million kw of power, how many buildings, etc. Since the resources of the economy are scarce, the problem of the nature of goods and their quantities has to be decided on the basis of priorities or preferences of the society.
If the society gives priority to the production of more consumer goods now, it will have less in the future. A higher priority on capital goods implies less consumer goods now and more in the future. But since resources are scarce, if some goods are produced in smaller quantities then some other goods have to produce in smaller quantity,
The next basic problem of an economy is to decide about the techniques or methods to be used in order to produce the required goods. This problem is primarily dependent upon the availability of resources within the economy.
If land is available in abundance, it may have extensive cultivation. If land is scarce, intensive methods of cultivation may be used. If labour is in abundance, it may use labour-intensive techniques; while in the case of labour shortage, capital-intensive techniques may be used.
The technique to be used also depends upon the type and quantity of goods to be produced. For producing capital goods and large outputs, complicated and expensive machines and techniques are required. On the other hand, simple consumer goods and small outputs require small and less expensive machines and comparatively simple techniques,
Further, it has to be decided what goods and services are to be produced in the public sector and what goods and services in the private sector, But in choosing between different methods of production, those methods should be adopted which bring about an efficient allocation of resources and increase the overall productivity in the economy.
The best technique is that which is most efficient. Efficiency is maximised by economising scarce resources.
For whom to produce is the issue of distribution. Distribution involves division of national product among the four factors of production land, labour, capital and organisation. This is called functional distribution. How much of the produced goods and services different sections of society can buy depends on the income they receive.
Inefficiencies in production and distribution exists in all economic systems. Welfare can be improved by minimising these inefficiencies. Scarcity of resources is the basic problem. If scarce resources are fully utilised, labour remaining unemployed, machinery lying idle and land kept unutilised are instances of under utilisation of resources.
Comments
Post a Comment