Economics project

1. Economics- Nature and Scope
Roll no : 89
FYBCOM : Division A
Name – Patel Kavya Bharat

2. Nature of Economics
Economics is
considered
as both a
science as
well as an art.
Science Arts
Economics- Nature and Scope

3. Science implies the following-
A systematic body of knowledge which trace the relationship between
cause and effects
Observation of certain facts, systematic collection and classification and
analysis of facts.
Making generalization on the basis of relevant facts and formulating
law theory there by after following certain assumption.
Economics- Nature and Scope

4. Positive Normative
Why
1.It deals with the things as they are.
1.It tells us what things ought to be.
1.It tells us method of realizing economic idea.
1.Economics study the evil effects of society and suggestion for removal of them.
1.Economics history is the study of economics phenomenon over successive period.
1. Economics is the study of welfare. It requires that economy should maximize human satisfaction from the
available resources
Economics- Nature and Scope

5. Economics Cover Wide Area And Serve Different Purpose
Stonier & Hague have divided the subject matter of Economics into three categories as discussed
below:
1)Economic Theory- It is theoretical part of economics. It contains economic theories and economic tools.
It is divided into static and dynamic economics. It is also known as economic analysis.
2)Applied Economics- It attempts to apply the results of economic analysis to descriptive economics.
Industrial economics, Managerial economics and Agricultural economics are some examples of applied
economics.
3)Descriptive Economics- In descriptive economics, relevant facts about a particular economic subject or
topic are collected for the purpose of study the subjects. ‘Indian Economics’ is the example of descriptive
economics.
Economics- Nature and Scope

6. Economics- Nature and Scope
Demand Analysis & Forecasting
Elasticity of Demand
Production & Cost Analysis
Capital Management
Profit Management
As regards the Scope of
Economics, no uniformity of
views exists among various
authors. However, the following
aspects are said to generally fall
under Economics.

7. Forecasting
“Prediction is very difficult,
especially if it's about the future.”
Nils Bohr
Forecasting is a tool used for predicting
future demand based on
past demand information.

8. Why is forecasting important?
Demand for products and services is usually uncertain.
Forecasting can be used for…
• Strategic planning (long range planning)
• Finance and accounting (budgets and cost controls)
• Marketing (future sales, new products)
• Production and operations

9. What is forecasting all about?
Demand for Mercedes E Class
Time
Jan Feb Mar Apr May Jun Jul Aug
Actual demand (past sales)
Predicted demand
We try to predict the
future by looking back
at the past
Predicted
demand
looking
back six
months

10. Some general characteristics of forecasts
• Forecasts are always wrong
• Forecasts are more accurate for groups or families of items
• Forecasts are more accurate for shorter time periods
• Every forecast should include an error estimate
• Forecasts are no substitute for calculated demand.

11. What Makes a Good Forecast?
• It should be timely
• It should be as accurate as possible
• It should be reliable
• It should be in meaningful units
• It should be presented in writing
• The method should be easy to use and
understand in most cases.