Basic Economics

This book has been divided into Four Chapters. The Very Short Introductions series of Economics provides concise introductions to more subjects than a person can reasonably hope to know. We offer a brief, pointed look at Economics in this earlier volume in the series. A little learning is a dangerous thing; and a basic introduction does not have to be easy. This book is not written for expert person in Economics but present its subject in the manner of an introductory textbook. Instead, he offers the lay reader an example of how economists define problems and issues and try to solve them. In other words, the book offers the reader an example of how to start in the subject Economics. This gives the book a dense character. The book develops its own way of approaching and his position of questions of economics, neither of which might be fully shared by all members of his profession. The book ties in economics with politics and, especially with ethics. Unlike some scientists who might try to minimize ethical, philosophical questions, it is quite clear that ethical commitments are a driving force behind economics and politics. As a social science, Economics describes what is happening in the economic system rather it attempts to explain how it exercises and make predictions about what may happen to economic variables. For example, it predicts the potential speculation, profits, saving, prices of goods and services etc. in future. In this regard, mathematics is fundamental to any grave application of economics to these areas. The quantification of economic variables is another important aspect of the economic analysis. In the process of simple demand analysis, we often predict the behaviour of the demand in terms of commodity price. Economics needs to determine how much demand is predictable to change if price is changed by an explicit amount. Thus quantification of economics requires the use of mathematics. This book amalgamated both theoretical parts and tools, so that students without having theoretical knowledge on economics can learn application of tools in Economics. We hope that students of both Economics and other disciplines especially the management students can learn economics from the point of view of practical life.