What are some philosophies on economics?

There are several philosophies on economics, each with its own perspective on how economic systems should be organized and managed. Here are some of the most prominent philosophies:

Capitalism: Capitalism is an economic system in which private individuals and businesses own and control the means of production, and the distribution and pricing of goods and services is determined by supply and demand in a competitive marketplace.

Socialism: Socialism is an economic system in which the means of production are owned and controlled by the state or by the workers, and the distribution and pricing of goods and services is determined by central planning rather than by supply and demand in a competitive marketplace.

Keynesianism: Keynesianism is an economic theory that advocates for government intervention in the economy to stabilize it during economic downturns. It suggests that the government should increase spending and decrease taxes to stimulate economic growth during times of recession.

Neoliberalism: Neoliberalism is an economic philosophy that advocates for minimal government intervention in the economy, and instead promotes free trade, deregulation, and privatization. It suggests that the market should be allowed to operate freely, without government interference.

Behavioral economics: Behavioral economics is a relatively new field that seeks to understand how psychological, social, and emotional factors influence economic decision-making. It suggests that people do not always act rationally or in their best interests when making economic decisions.

Environmental economics: Environmental economics is a branch of economics that seeks to understand the relationship between the economy and the environment. It suggests that economic growth should not come at the expense of environmental sustainability, and that policies should be developed to encourage sustainable economic practices.

These are just a few examples of the many philosophies and theories on economics. Each philosophy has its own strengths and weaknesses, and different societies and governments may adopt different approaches to economic management based on their own unique circumstances and values.

What is the relation between supply and demand?

Supply and demand are two fundamental concepts in economics that are closely related to each other.

In simple terms, supply refers to the quantity of goods or services that producers are willing and able to offer for sale at a given price, while demand refers to the quantity of goods or services that buyers are willing and able to purchase at a given price.

The relationship between supply and demand is inverse. When the supply of a particular good or service increases, assuming that demand remains constant, the price of that good or service tends to decrease. Conversely, when the supply of a particular good or service decreases, assuming that demand remains constant, the price of that good or service tends to increase.

Similarly, when the demand for a particular good or service increases, assuming that supply remains constant, the price of that good or service tends to increase. Conversely, when the demand for a particular good or service decreases, assuming that supply remains constant, the price of that good or service tends to decrease.

Therefore, the equilibrium price of a good or service is the point at which the quantity of that good or service supplied is equal to the quantity of that good or service demanded, and it is determined by the intersection of the supply and demand curves.

Discuss the welfare effects of Regional Trade Agreements | IGNOU Economics

Discuss the welfare effects of Regional Trade Agreements in case of (a) Trade diversion and (b) Trade creation.

What is Regional Trade Agreement?

Regional trade agreements (RTAs) are agreements between two or more nations and their governments for doing trade between themselves so that they can import less from countries that are outside their region.

The primary purpose of any regional trade agreement is for economic integration and that's how trade blocs are formed. RTAs are categorized into 5 stages:-
1. Preferential trading area
2. Free trade area
3. Customs union
4. Common market
5. Economic and monetary union

Circular Flow of Income | How an economy works | Macroeconomics

Economic agents in an economy

In this article we are going to learn how an economy works. We have three economic agents that play a major role in a country's economy, they are - Firms, Government and Household.

Let's first understand the role of a firm. To understand this topic we are going to take an example of a capitalist country. In a capitalist country production activities are mainly carried out by capitalist enterprises. In other word we call them business tycoons - how in India we have the Ambani's, the Tata's, the Birla's etc...Countries like United states, Canada, France, Germany they are a good example of a capitalist economy. In a typical capitalist enterprise there is

MEC- 001 | Bring out the salient features of overlapping generations (OLG) model.

What is OLG model?

An overlapping generations model, abbreviated to OLG model, is a type of economic model in which agents live a finite length of time long enough to overlap with at least one period of another agent's life. As it models explicitly the different periods of life, such as schooling, working or retirement periods, it is the natural framework to study the allocation of resources across the different generations.

Some of the features of OLG model.

Permanent Income Hypothesis | Theory and Definition

The permanent income hypothesis (PIH) is an economic theory which describe how agents spread consumption over their lifetimes. It was first developed by Milton Friedman, it assumes that a person's consumption at a point in time is determined not just by their current income but also by their expected income in future years which is known as their permanent income. Hence the permanent income hypothesis states the ongoing changes in permanent income, rather than

Bring out the main features of real business cycle (RBC) model | IGNOU Economics

Real business-cycle theory (RBC theory) are a class of New classical macroeconomics models in which business-cycle fluctuations to a large extent can be accounted for by real (in contrast to nominal) shocks. Unlike other leading theories of the business cycle, RBC theory sees business cycle fluctuations as the efficient response to exogenous changes in the real economic environment.