Basics of Economics

News and reports of GDP, Inflation, Unemployment Rate and Industrial activity have been in discussion for a long time. Their significance has increased in the last few years, with all them being widely discussed and debated on forums, news channels and government addresses.

Why are these so important part of our discussion for the growth of the country? Because these all are important Economic indicators that are used to signify consumption, production and distribution of resources at large.

Economics as a concept is misinterpreted a number of times. Factors like GDP, Inflation, Unemployment Rate and Industrial activity are Economic indicators but not Economics, as misinterpreted some times. It has a broader concept.

Economics deals with the allocation of limited, available, and costly resources to different uses as per prioritisation. It is based on principle, that every resource we have is limited in quantity, and due to this limit, it commands a price.

These resources can be put into use in a number of ways. Therefore we need to figure out the ideal way of allocation of these resources to have maximum overall output at Macro and Micro levels. This theory, or field of operation to find ideal allocation of scarce resources is termed as Economics, and various aspects of Economics can be represented with various indicators as mentioned earlier.

Economic indicators are of primary importance. They not only indicate some numbers, but in actual represent the level of activity in the economy, output production, price levels of goods produced, employment rate, rate at which capital can be lent or borrowed and therefore influencing output, etc. Each factor is closely connected with other factors.

• What is Microeconomics and Macroeconomics?
• How to analyse major Economic indicators?
• How do they affect our growth?
• What is the difference between nominal and real GDP growth rate?

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