Monthly Archives: February 2013

Tree and Forest

To answer your question about why it is wrong to say that micro economics studies the tree and macro economics studies the forest – The difference between microeconomics and macroeconomics can be explained by using the example of a tree

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MECHANISMS TO SOLVE ECONOMIC PROBLEMS – IV (3)

IV (3). Centrally directed economic systems  3. Akbarnama There was also some kind of central direction during the Moghul rule (1526-1707) ABUL FAZL, the prime minister of emperor Akbar, propounds a theory of monarchy approved by the emperor in the

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MECHANISMS TO SOLVE ECONOMIC PROBLEMS – IV (2)

IV. Centrally directed economic systems  2. Arthashastra Some examples of central direction is also found in Kdautilya’s “Arthashastra” which consists of 150 chapters or 6000 shlokas composed in the interested of the Maurya King Kautilya also known as Vishnugupta or

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MECHANISMS TO SOLVE ECONOMIC PROBLEMS – IV (1)

IV. Centrally directed economic systems 1 Introduction: Central direction as a mechanism to solve the economic problem was resorted to by the olden kings even in India. The political organisation was headed by the king i.e.a hereditary institution under the

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MECHANISMS TO SOLVE ECONOMIC PROBLEMS – III (2c ii)

III (2 c ii) Earlier economic systems were based on customs, conventions and traditions.  ii. Jajmani system A similar system existed in North India known as the Jajmani system. The word Jajman comes from the sanskrit word “Yajman” which means

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MECHANISMS TO SOLVE ECONOMIC PROBLEMS – III (2c i)

III (2 c i) Earlier economic systems were based on customs, conventions and traditions. C i).Balutedari System: In olden days there existed the Barter system of exchange i.e. exchange of goods for goods. Money was not used. Individuals earned their

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MECHANISMS TO SOLVE ECONOMIC PROBLEMS – III (2b)

III (2 b)Earlier economic systems were based on customs, conventions and traditions. b).Feudalism: The feudal mode of production consumption & distribution prevailed in most European countries during the middle ages. The fundamental feature of feudalism was that the society was

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MECHANISMS TO SOLVE ECONOMIC PROBLEMS – III (2a)

III Earlier economic systems were based on customs, conventions and traditions. 2.Owner-Worker Tenant Systems:- a) Slavery:- With a few powerful people becoming owners of land & other property, they became rulers having superior powers & rights over those who were

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MECHANISMS TO SOLVE ECONOMIC PROBLEMS – III(1)

Earlier economic systems were based on customs, conventions and traditions. 1. Primitive communism or village economy  To begin in very early times when man began to live in groups, a sort of crude and simple system was evolved to meet

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MECHANISMS TO SOLVE ECONOMIC PROBLEMS – II

Economic systems An economic system is an orderly institutional arrangement evolved & adopted by human societies. It is a mechanism which a society/nation adopts to solve the economic problem. It is an institutional arrangement through which important decisions such as

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