Industrial Economics and Management
UNIT-1
1.Define Economics and Explain the term Industrial Economics .
The father of Economics Adam Smith economics as ‘An inquiry into the nature and causes of the wealth of nations’
According to Alfred Marshall ‘Economics is the study of mankind in the ordinary business of life, it examines that part of individual and social action which is mostly connected with the attainment and with the use of the material requisites of well being.
Explanation- Economics is the study of man’s actions in the ordinary business of life, it inquires as to how he gets his income and how he utilizes it. Thus on one hand it is study of wealth and on other it is the study of man.
Lionel Robbins has defined it more precisely as ‘ Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses’
Or in simpler words Economics is the science of choice in face of unlimited ends and scarce resources that have alternative uses.
Industrial economics is a distinctive branch of economics which deals with the economic problems of firms and industries, and their relationship with society.
It is concerned with the working, growth and structures of the industrial sector (firms and industries) of the country, management and organization of the industries and problems and prospects of industrial growth. There are two broad elements of industrial economics. The first one, known as the descriptive element and it deals with the information about the competitors, natural resources and factors of production and government rules and regulations related to the concerned industry. The second element of the subject is concerned with the business policy and decision-making. This is the analytical part dealing with topics such as market analysis, pricing, choice of techniques, location of plant, investment planning, hiring and firing of labor, financial decisions, product diversification and so on.
2.Distinguish between Micro
1.Define Economics and Explain the term Industrial Economics .
The father of Economics Adam Smith economics as ‘An inquiry into the nature and causes of the wealth of nations’
According to Alfred Marshall ‘Economics is the study of mankind in the ordinary business of life, it examines that part of individual and social action which is mostly connected with the attainment and with the use of the material requisites of well being.
Explanation- Economics is the study of man’s actions in the ordinary business of life, it inquires as to how he gets his income and how he utilizes it. Thus on one hand it is study of wealth and on other it is the study of man.
Lionel Robbins has defined it more precisely as ‘ Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses’
Or in simpler words Economics is the science of choice in face of unlimited ends and scarce resources that have alternative uses.
Industrial economics is a distinctive branch of economics which deals with the economic problems of firms and industries, and their relationship with society.
It is concerned with the working, growth and structures of the industrial sector (firms and industries) of the country, management and organization of the industries and problems and prospects of industrial growth. There are two broad elements of industrial economics. The first one, known as the descriptive element and it deals with the information about the competitors, natural resources and factors of production and government rules and regulations related to the concerned industry. The second element of the subject is concerned with the business policy and decision-making. This is the analytical part dealing with topics such as market analysis, pricing, choice of techniques, location of plant, investment planning, hiring and firing of labor, financial decisions, product diversification and so on.
2.Distinguish between Micro