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93-456: In economics , a shortage or excess demand is a situation in which the demand for a product or service exceeds its supply in a market . It is the opposite of an excess supply ( surplus ). In a perfect market (one that matches a simple microeconomic model), an excess of demand will prompt sellers to increase prices until demand at that price matches the available supply, establishing market equilibrium . In economic terminology,

186-430: A certain percentage of the population to purchase a product that they couldn't afford at market costs. Economic shortages caused by higher transaction costs and opportunity costs (e.g., in the form of lost time) also mean that the distribution process is wasteful. Both of these factors contribute to a decrease in aggregate wealth. Shortages may or will cause: Many regions around the world have experienced shortages in

279-432: A certain portion of the population to purchase a product that they couldn't afford at the market-clearing price. The cost is to those who are willing to pay for a product and either can't, or experience greater difficulty in doing so. In the case of government intervention in the market, there is always a trade-off with positive and negative effects. For example, a price ceiling may cause a shortage, but it will also enable

372-702: A definition of economics as a study of human behaviour, subject to and constrained by scarcity, which forces people to choose, allocate scarce resources to competing ends, and economise (seeking the greatest welfare while avoiding the wasting of scarce resources). According to Robbins: "Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses". Robbins' definition eventually became widely accepted by mainstream economists, and found its way into current textbooks. Although far from unanimous, most mainstream economists would accept some version of Robbins' definition, even though many have raised serious objections to

465-419: A diploma in certain majors, e.g. math and physics. Around 1996–1997, one year was reduced from the entire education system and one was honored with a diploma after three years in high school. However, if one would have liked to continue her/his education towards university degrees, one would have been required to take the last year, so called pre-university year. This year had been a requirement to participate in

558-451: A distinct field. The book focused on determinants of national income in the short run when prices are relatively inflexible. Keynes attempted to explain in broad theoretical detail why high labour-market unemployment might not be self-correcting due to low " effective demand " and why even price flexibility and monetary policy might be unavailing. The term "revolutionary" has been applied to the book in its impact on economic analysis. During

651-423: A given academic year are eligible to appear for Secondary board exams, and those 17 by the same date are eligible to appear for Higher Secondary certificate board exams. It further states that upon successful completion of Higher Secondary, one can apply to higher education under UGC control such as Engineering, Medical, and Business Administration. India in 29 July approved a new education policy in order to replace

744-524: A grade, school years are usually referred to by their cardinal number ("Grade Three"). At the post-secondary level in (Anglophone) Canada, a student is usually referred to by the year of study they are in (i.e. First Year, Second Year, etc.). If they are pursuing something higher than an undergraduate degree, the designation usually refers to what year of study they are in since entering Graduate studies (i.e. First Year Graduate Student, etc.). Any student who has completed their first year of undergraduate studies

837-420: A lower relative cost of production, rather relying only on its own production. It has been termed a "fundamental analytical explanation" for gains from trade . Coming at the end of the classical tradition, John Stuart Mill (1848) parted company with the earlier classical economists on the inevitability of the distribution of income produced by the market system. Mill pointed to a distinct difference between

930-525: A lower-than-market-clearing price; the narrower technical definition doesn't consider failure to serve this demand as a "shortage", even if it would be described that way in a social or political context (which the simple model of supply and demand does not attempt to encompass). Shortages (in the technical sense) may be caused by the following causes: Decisions which result in a below-market-clearing price help some people and hurt others. In this case, shortages may be accepted because they theoretically enable

1023-449: A more comprehensive theory of costs on the supply side. In the 20th century, neoclassical theorists departed from an earlier idea that suggested measuring total utility for a society, opting instead for ordinal utility , which posits behaviour-based relations across individuals. In microeconomics , neoclassical economics represents incentives and costs as playing a pervasive role in shaping decision making . An immediate example of this

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1116-467: A more important role in mainstream economic theory. Also, heterogeneity among the economic agents, e.g. differences in income, plays an increasing role in recent economic research. Other schools or trends of thought referring to a particular style of economics practised at and disseminated from well-defined groups of academicians that have become known worldwide, include the Freiburg School ,

1209-535: A multilingualism approach. The NEP proposes sweeping changes including opening up of Indian higher education to foreign universities, dismantling of the UGC and the All India Council for Technical Education (AICTE), introduction of a four-year multidisciplinary undergraduate programme with multiple exit options, and discontinuation of the M Phil programme. In school education, the policy focuses on overhauling

1302-435: A perfect market the only thing that can cause a shortage is price. In common use, the term "shortage" may refer to a situation where most people are unable to find a desired good at an affordable price, especially where supply problems have increased the price. " Market clearing " happens when all buyers and sellers willing to transact at the prevailing price are able to find partners. There are almost always willing buyers at

1395-597: A proportion of the value their work had created. Marxian economics was further developed by Karl Kautsky (1854–1938)'s The Economic Doctrines of Karl Marx and The Class Struggle (Erfurt Program) , Rudolf Hilferding 's (1877–1941) Finance Capital , Vladimir Lenin (1870–1924)'s The Development of Capitalism in Russia and Imperialism, the Highest Stage of Capitalism , and Rosa Luxemburg (1871–1919)'s The Accumulation of Capital . At its inception as

1488-579: A rapidly expanding economy, whilst labour shortages often occur within specific industries (which generally offer low salaries) even during economic periods of high unemployment. In response to domestic labour shortages, business associations such as chambers of commerce would generally lobby to governments for an increase of the inward immigration of foreign workers from countries which are less developed and have lower salaries. In addition, business associations have campaigned for greater state provision of child care , which would enable more women to re-enter

1581-409: A rapidly growing population against a limited amount of land meant diminishing returns to labour. The result, he claimed, was chronically low wages, which prevented the standard of living for most of the population from rising above the subsistence level. Economist Julian Simon has criticised Malthus's conclusions. While Adam Smith emphasised production and income, David Ricardo (1817) focused on

1674-469: A set of stable preferences, a definite overall guiding objective, and the capability of making a choice. There exists an economic problem, subject to study by economic science, when a decision (choice) is made by one or more players to attain the best possible outcome. Keynesian economics derives from John Maynard Keynes , in particular his book The General Theory of Employment, Interest and Money (1936), which ushered in contemporary macroeconomics as

1767-416: A shortage occurs when for some reason (such as government intervention, or decisions by sellers not to raise prices) the price does not rise to reach equilibrium. In this circumstance, buyers want to purchase more at the market price than the quantity of the good or service that is available, and some non-price mechanism (such as "first come, first served" or a lottery) determines which buyers are served. So in

1860-409: A single tax on income of land owners. In reaction against copious mercantilist trade regulations, the physiocrats advocated a policy of laissez-faire , which called for minimal government intervention in the economy. Adam Smith (1723–1790) was an early economic theorist. Smith was harshly critical of the mercantilists but described the physiocratic system "with all its imperfections" as "perhaps

1953-452: A social science, economics was defined and discussed at length as the study of production, distribution, and consumption of wealth by Jean-Baptiste Say in his Treatise on Political Economy or, The Production, Distribution, and Consumption of Wealth (1803). These three items were considered only in relation to the increase or diminution of wealth, and not in reference to their processes of execution. Say's definition has survived in part up to

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2046-435: A sought after end). Some subsequent comments criticised the definition as overly broad in failing to limit its subject matter to analysis of markets. From the 1960s, however, such comments abated as the economic theory of maximizing behaviour and rational-choice modelling expanded the domain of the subject to areas previously treated in other fields. There are other criticisms as well, such as in scarcity not accounting for

2139-575: A special standard. Forms 1 to 9 are considered compulsory. After completing general basic school a person can study in a special establishment to get a job. To enter a higher educational establishment a person must complete general secondary school (all 11 forms) and pass three centralized tests. (nursery) (kindergarten) (secondary) (high) In Brazil, there are three levels of basic education: "Educação Infantil" (preschool), "Ensino Fundamental" (primary school) and "Ensino Médio" (high school), which are generally completed by age eighteen. Basic education

2232-442: A synthesis emerged by the 2000s, often given the name the new neoclassical synthesis . It integrated the rational expectations and optimizing framework of the new classical theory with a new Keynesian role for nominal rigidities and other market imperfections like imperfect information in goods, labour and credit markets. The monetarist importance of monetary policy in stabilizing the economy and in particular controlling inflation

2325-853: Is a social science that studies the production , distribution , and consumption of goods and services . Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as basic elements within economies , including individual agents and markets , their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings , and investment expenditure interact, and factors affecting it: factors of production , such as labour , capital , land , and enterprise , inflation , economic growth , and public policies that have impact on these elements . It also seeks to analyse and describe

2418-421: Is a term for the "way (nomos) to run a household (oikos)", or in other words the know-how of an οἰκονομικός ( oikonomikos ), or "household or homestead manager". Derived terms such as "economy" can therefore often mean "frugal" or "thrifty". By extension then, "political economy" was the way to manage a polis or state. There are a variety of modern definitions of economics ; some reflect evolving views of

2511-438: Is also applied to such diverse subjects as crime , education , the family , feminism , law , philosophy , politics , religion , social institutions , war , science , and the environment . The earlier term for the discipline was "political economy", but since the late 19th century, it has commonly been called "economics". The term is ultimately derived from Ancient Greek οἰκονομία ( oikonomia ) which

2604-461: Is considered to be an Upper Year Student. Each province and territory has its own autonomous education system. As such, the name of each level of education and what year each level begins at will vary across the country (as will the curriculum itself). The following table shows how grades are organized in various provinces. Often, there will be exceptions within each province, both with terminology for groups, and which grades apply to each group. In

2697-620: Is designed to provide the necessary minimum knowledge for the exercise of citizenship. It also serves to develop consciousness for choosing future professions. In Brazil, after the name of the grade one may use the names "série" (series) or "ano" (year). The educational stages in Brazil are divided as follows: In Canada , schooling officially begins at Kindergarten (or Maternelle in Quebec), followed by grades , with some variations for certain levels in certain provinces/territories. When referred to as

2790-499: Is often called Higher Secondary (HS) , Senior Secondary, or simply the "+2" stage . The two halves of secondary education are each an important stage for which a pass certificate is needed, and thus are affiliated by central boards of education under HRD ministry, before one can pursue higher education, including college or professional courses. UGC, NCERT, CBSE and CISCE directives state qualifying ages for candidates who wish to take board exams. Those at least 15 years old by 30 May for

2883-657: Is possible in France to fail a year, and need to repeat ( redoubler ). Education is compulsory from age 4 to age 15. Education is provided in public and private schools, except Higher Education which is provided only by public universities . The Hong Kong system was based on the United Kingdom system, with zero to three optional years at kindergarten , six years of primary school (小學) and six years of secondary school (中學), followed by four years at university. Primary 1–6 (小一 – 小六) corresponds to Years 1–6 in

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2976-413: Is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it

3069-598: Is the consumer theory of individual demand, which isolates how prices (as costs) and income affect quantity demanded. In macroeconomics it is reflected in an early and lasting neoclassical synthesis with Keynesian macroeconomics. Neoclassical economics is occasionally referred as orthodox economics whether by its critics or sympathisers. Modern mainstream economics builds on neoclassical economics but with many refinements that either supplement or generalise earlier analysis, such as econometrics , game theory , analysis of market failure and imperfect competition , and

3162-497: Is years 7–9, and college or Senior Secondary is years 10, 11 & 12 (see table below). In the Northern Territory (NT) , primary school is Transition/years 1–6, middle school is years 7–9, and high school or Senior Secondary is years 10–12 (see table below). In Belarus, education is guaranteed for everyone. Primary school lasts for 4 years, but some psycho-physically challenged children study for 5 years according to

3255-677: The English term form followed by the English number is common usage even in otherwise Cantonese conversations. The central and main state boards uniformly follow the "10+2+3" pattern of education. In this pattern, study of 10 years is done in schools and 2 years in Junior colleges, and then 3 years of graduation for a bachelor's degree. The first 10 years is further subdivided into 4 years of primary education, 6 years of High School followed by 2 years of Junior colleges. This pattern originated from

3348-544: The Iranian University Entrance Exam for high school students. Again, around 2012, the system turned back to its previous system, consisting of two 6-year periods. There are two formal stages of education in Iran : primary school (دبستان, Dabestãn ) and high school (دبیرستان, Dabirestãn ). The high school itself is broken into 2 parts: A and B. Preschool educations are informal, therefore Grade 1

3441-454: The People's Republic of China (excluding Hong Kong and Macau), the years are organized in three stages and renumbered within each stage: 6 years in elementary school (小学) years 1 to 6, then 3 years in middle school (初级中学, abbreviated 初中) years 7 to 9, then 3 years in high school (高级中学, abbreviated 高中) years 10 to 12. The first nine years (elementary 1–6 and middle 1–3) are compulsory , and

3534-780: The School of Lausanne , the Stockholm school and the Chicago school of economics . During the 1970s and 1980s mainstream economics was sometimes separated into the Saltwater approach of those universities along the Eastern and Western coasts of the US, and the Freshwater, or Chicago school approach. Within macroeconomics there is, in general order of their historical appearance in

3627-433: The macroeconomics of high unemployment. Gary Becker , a contributor to the expansion of economics into new areas, described the approach he favoured as "combin[ing the] assumptions of maximizing behaviour, stable preferences , and market equilibrium , used relentlessly and unflinchingly." One commentary characterises the remark as making economics an approach rather than a subject matter but with great specificity as to

3720-446: The marketplace demands for employment at a wage that is mostly employer-determined. Such a condition is sometimes referred to by economists as "an insufficiency in the labour force ." An ageing population and a contracting workforce and a birth dearth may curb U.S. economic expansion for several decades, for example. In a wider definition, a widespread domestic labour shortage is caused by excessively low salaries (relative to

3813-467: The neoclassical model of economic growth for analysing long-run variables affecting national income . Neoclassical economics studies the behaviour of individuals , households , and organisations (called economic actors, players, or agents), when they manage or use scarce resources, which have alternative uses, to achieve desired ends. Agents are assumed to act rationally, have multiple desirable ends in sight, limited resources to obtain these ends,

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3906-415: The societal to the microeconomic level: Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. Lionel Robbins (1932) developed implications of what has been termed "[p]erhaps the most commonly accepted current definition of

3999-400: The "choice process and the type of social interaction that [such] analysis involves." The same source reviews a range of definitions included in principles of economics textbooks and concludes that the lack of agreement need not affect the subject-matter that the texts treat. Among economists more generally, it argues that a particular definition presented may reflect the direction toward which

4092-486: The 1970s and 1980s, when several major central banks followed a monetarist-inspired policy, but was later abandoned because the results were unsatisfactory. A more fundamental challenge to the prevailing Keynesian paradigm came in the 1970s from new classical economists like Robert Lucas , Thomas Sargent and Edward Prescott . They introduced the notion of rational expectations in economics, which had profound implications for many economic discussions, among which were

4185-531: The National Education Policy 2020 has taken a similar approach like Cambridge and IB, which also offer dedicated Primary Year Programs. Dismantling the age-old 10+2 concept, the policy pitches for a " 5+3+3+4 " design corresponding to the age groups 3–8 years (foundational stage), 8–11 (preparatory), 11–14 (middle), and 14–18 (secondary). This brings early childhood education (also known as pre-school education for children of ages 3 to 5) under

4278-737: The UK, and Forms 1 – 6 (中一 – 中六) correspond to Years 7–12. Usually students begin Primary 1 at age 5 or 6 and complete Form 6 at age 17 or 18. In Hong Kong, international schools follow the system of the country they are based upon, for example the English Schools Foundation uses the UK year system, and the French International School of Hong Kong uses the French école, collège , lycée system. Also,

4371-407: The analysis of wealth: how wealth is created (production), distributed, and consumed; and how wealth can grow. But he said that economics can be used to study other things, such as war, that are outside its usual focus. This is because war has as the goal winning it (as a sought after end ), generates both cost and benefits; and, resources (human life and other costs) are used to attain the goal. If

4464-479: The area of inquiry or object of inquiry rather than the methodology. In the biology department, it is not said that all biology should be studied with DNA analysis. People study living organisms in many different ways, so some people will perform DNA analysis, others might analyse anatomy, and still others might build game theoretic models of animal behaviour. But they are all called biology because they all study living organisms. According to Ha Joon Chang, this view that

4557-443: The author believes economics is evolving, or should evolve. Many economists including nobel prize winners James M. Buchanan and Ronald Coase reject the method-based definition of Robbins and continue to prefer definitions like those of Say, in terms of its subject matter. Ha-Joon Chang has for example argued that the definition of Robbins would make economics very peculiar because all other sciences define themselves in terms of

4650-412: The ban on child labour are difficult to enforce due to economic disparity and social conditions. 80% of all recognised schools at the elementary stage are government run or supported, making it the largest provider of education in the country. Secondary education covers children aged 12 to 18, a group comprising 8.85 crore children according to the 2001 Census of India . The final two years of secondary

4743-517: The colonies. Physiocrats , a group of 18th-century French thinkers and writers, developed the idea of the economy as a circular flow of income and output. Physiocrats believed that only agricultural production generated a clear surplus over cost, so that agriculture was the basis of all wealth. Thus, they opposed the mercantilist policy of promoting manufacturing and trade at the expense of agriculture, including import tariffs. Physiocrats advocated replacing administratively costly tax collections with

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4836-693: The curriculum, "easier" Board exams, a reduction in the syllabus to retain "core essentials" and thrust on "experiential learning and critical thinking". The policy also proposes phasing out of all institutions offering single streams and that all universities and colleges must aim to become multidisciplinary by 2040. In Indonesia , children spend 12 years of formal education, but some children attend nursery playgroup (called Kelompok Belajar in 2 years) and attend kindergarten (Called Taman Kanak-Kanak in 2 years). (Nursery Playgroup) (Kindergarten) (Elementary School) (Junior High School) (Senior High School) The Iranian system has experienced several changes in

4929-488: The design of modern monetary policy and are now standard workhorses in most central banks. After the 2007–2008 financial crisis , macroeconomic research has put greater emphasis on understanding and integrating the financial system into models of the general economy and shedding light on the ways in which problems in the financial sector can turn into major macroeconomic recessions. In this and other research branches, inspiration from behavioural economics has started playing

5022-506: The distribution of income among landowners, workers, and capitalists. Ricardo saw an inherent conflict between landowners on the one hand and labour and capital on the other. He posited that the growth of population and capital, pressing against a fixed supply of land, pushes up rents and holds down wages and profits. Ricardo was also the first to state and prove the principle of comparative advantage , according to which each country should specialise in producing and exporting goods in that it has

5115-598: The domestic cost of living ) and adverse working conditions (excessive workload and working hours ) in low-wage industries ( hospitality and leisure , education , health care , rail transportation , aviation , retail , manufacturing , food , elderly care ), which collectively lead to occupational burnout and attrition of existing workers, insufficient incentives to attract the inflow supply of domestic workers, short-staffing at workplaces and further exacerbation ( positive feedback ) of staff shortages. Labour shortages occur broadly across multiple industries within

5208-533: The early 17th century but ended by the early 19th century) was said to have originated from perceived shortages of agricultural labour in the Americas (particularly in the Southern United States ). It was thought that bringing African labor was the only means of malaria resistance available at the time. Economics Economics ( / ˌ ɛ k ə ˈ n ɒ m ɪ k s , ˌ iː k ə -/ )

5301-469: The economy can and should be studied in only one way (for example by studying only rational choices), and going even one step further and basically redefining economics as a theory of everything, is peculiar. Questions regarding distribution of resources are found throughout the writings of the Boeotian poet Hesiod and several economic historians have described Hesiod as the "first economist". However,

5394-751: The first large-scale macroeconometric model , applying the Keynesian thinking systematically to the US economy . Immediately after World War II, Keynesian was the dominant economic view of the United States establishment and its allies, Marxian economics was the dominant economic view of the Soviet Union nomenklatura and its allies. Monetarism appeared in the 1950s and 1960s, its intellectual leader being Milton Friedman . Monetarists contended that monetary policy and other monetary shocks, as represented by

5487-540: The following decades, many economists followed Keynes' ideas and expanded on his works. John Hicks and Alvin Hansen developed the IS–LM model which was a simple formalisation of some of Keynes' insights on the economy's short-run equilibrium. Franco Modigliani and James Tobin developed important theories of private consumption and investment , respectively, two major components of aggregate demand . Lawrence Klein built

5580-509: The global economy . Other broad distinctions within economics include those between positive economics , describing "what is", and normative economics , advocating "what ought to be"; between economic theory and applied economics ; between rational and behavioural economics ; and between mainstream economics and heterodox economics . Economic analysis can be applied throughout society, including business , finance , cybersecurity , health care , engineering and government . It

5673-424: The growth in the money stock, was an important cause of economic fluctuations, and consequently that monetary policy was more important than fiscal policy for purposes of stabilisation . Friedman was also skeptical about the ability of central banks to conduct a sensible active monetary policy in practice, advocating instead using simple rules such as a steady rate of money growth. Monetarism rose to prominence in

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5766-463: The importance of various market failures for the functioning of the economy, as had Keynes. Not least, they proposed various reasons that potentially explained the empirically observed features of price and wage rigidity , usually made to be endogenous features of the models, rather than simply assumed as in older Keynesian-style ones. After decades of often heated discussions between Keynesians, monetarists, new classical and new Keynesian economists,

5859-493: The labour workforce. However, as labour shortages in the relevant low-wage industries are often widespread globally throughout many countries in the world, immigration would only partially address the chronic labour shortages in the relevant low-wage industries in developed countries (whilst simultaneously discouraging local labour from entering the relevant industries) and in turn cause greater labour shortages in developing countries. The Atlantic slave trade (which originated in

5952-575: The last seven to eight decades. Prior to 1940–1950, the education system had consisted of three levels, called in order: an optional year in kindergarten , six years of primary school , finally followed by six years of secondary school ending up with a diploma. After some improvements during Mohammad Reza Shah Pahlavi , the system was changed to four consecutive periods: two optional years in kindergarten and pre-primary school, primary school consisting of 5 years, 3 years in middle school, and finally four years in high school. The system ended up by honoring

6045-549: The literature; classical economics , neoclassical economics , Keynesian economics , the neoclassical synthesis , monetarism , new classical economics , New Keynesian economics and the new neoclassical synthesis . Educational stage Education during childhood and early adulthood is typically provided through either a two- or three-stage system of childhood school , followed by additional stages of higher education or vocational education for those who continue their formal education: The following table introduces

6138-751: The main concepts, although terms and ages may vary in different places: For additional ISCED stages of education, see ISCED . Sudbury schools do not use formal grade levels or educational stages. Instead, students ages 3 through 18 are intermingled in a democratic educational system, relying on a series of certifications to use equipment that may require specialized knowledge or safety procedures. These certifications are not typically restricted by age, but rather by demonstrated ability. In Australia , children undergo thirteen years of formal education (plus non-compulsory preschool or kindergarten), usually starting at age 4, 5 or 6, and finishing at age 17, 18 or 19. The years are numbered from "Kindergarten" to 12. In

6231-449: The market's two roles: allocation of resources and distribution of income. The market might be efficient in allocating resources but not in distributing income, he wrote, making it necessary for society to intervene. Value theory was important in classical theory. Smith wrote that the "real price of every thing ... is the toil and trouble of acquiring it". Smith maintained that, with rent and profit, other costs besides wages also enter

6324-818: The medium of instruction at least till grade 5, but preferably till Grade 8 and beyond. Sanskrit will now be offered at all levels of school and higher education as an option for students including the 3-language formula. Other classical languages and literature of India also to be available as options. In non-Hindi states of India, students will be served as a Hindi alternative, students will have to choose between Hindi and Sanskrit . Tamil , Telugu , Bengali , Punjabi , etc. languages will also be emphasized under NEP2020. Foreign languages will also be offered to students. Languages like Japanese , Korean , Russian , etc. will be introduced to them in their secondary school. They can opt for any language they want to learn. The step has been taken to embrace global culture and emphasize

6417-437: The most famous passages in all economics," Smith represents every individual as trying to employ any capital they might command for their own advantage, not that of the society, and for the sake of profit, which is necessary at some level for employing capital in domestic industry, and positively related to the value of produce. In this: He generally, indeed, neither intends to promote the public interest, nor knows how much he

6510-468: The past. Garrett Hardin emphasised that a shortage of supply can just as well be viewed as a "longage" of demand . For instance, a shortage of food can just as well be called a longage of people ( overpopulation ). By looking at it from this view, he felt the problem could be better dealt with. In its narrowest definition, a labour shortage is an economic condition in which employers believe there are insufficient qualified candidates (employees) to fill

6603-503: The pessimistic analysis of Malthus (1798). John Stuart Mill (1844) delimited the subject matter further: The science which traces the laws of such of the phenomena of society as arise from the combined operations of mankind for the production of wealth, in so far as those phenomena are not modified by the pursuit of any other object. Alfred Marshall provided a still widely cited definition in his textbook Principles of Economics (1890) that extended analysis beyond wealth and from

6696-487: The present, modified by substituting the word "wealth" for "goods and services" meaning that wealth may include non-material objects as well. One hundred and thirty years later, Lionel Robbins noticed that this definition no longer sufficed, because many economists were making theoretical and philosophical inroads in other areas of human activity. In his Essay on the Nature and Significance of Economic Science , he proposed

6789-517: The previous education system to an advanced education system. The new policy aims for universalisation of education from pre-school to secondary level with 100 per cent Gross Enrolment Ratio (GER) in school education by 2030 and aims to raise GER in higher education to 50 per cent by 2025. Key points : The policy also proposes phasing out of all institutions offering single streams and that all universities and colleges must aim to become multidisciplinary by 2040. Introducing 3 years of pre-schooling,

6882-409: The price of a commodity. Other classical economists presented variations on Smith, termed the ' labour theory of value '. Classical economics focused on the tendency of any market economy to settle in a final stationary state made up of a constant stock of physical wealth (capital) and a constant population size . Marxist (later, Marxian) economics descends from classical economics and it derives from

6975-429: The purest approximation to the truth that has yet been published" on the subject. The publication of Adam Smith 's The Wealth of Nations in 1776, has been described as "the effective birth of economics as a separate discipline." The book identified land, labour, and capital as the three factors of production and the major contributors to a nation's wealth, as distinct from the physiocratic idea that only agriculture

7068-597: The recommendation of the Education Commission of 1964–66. The Indian government lays emphasis on primary education, also referred to as elementary education, to children aged 6 to 14 years old. Because education laws are given by the states, duration of primary school visit alters between the Indian states. The Indian government has also banned child labour in order to ensure that the children do not enter unsafe working conditions. However, both free education and

7161-412: The scope and method of economics, emanating from that definition. A body of theory later termed "neoclassical economics" formed from about 1870 to 1910. The term "economics" was popularised by such neoclassical economists as Alfred Marshall and Mary Paley Marshall as a concise synonym for "economic science" and a substitute for the earlier " political economy ". This corresponded to the influence on

7254-495: The six states: New South Wales (NSW) , Western Australia (WA) , South Australia (SA) , Victoria (VIC) , Queensland (QLD) , and Tasmania (TAS) , primary school is Kindergarten (NSW)/Pre-primary (WA)/Reception (SA)/Prep (VIC, QLD & TAS) and Years 1–6, and secondary school, Years 7–12 (see table below). In the Australian Capital Territory (ACT) , primary school is Kindergarten/years 1–6, high school

7347-486: The so-called Lucas critique and the presentation of real business cycle models . During the 1980s, a group of researchers appeared being called New Keynesian economists , including among others George Akerlof , Janet Yellen , Gregory Mankiw and Olivier Blanchard . They adopted the principle of rational expectations and other monetarist or new classical ideas such as building upon models employing micro foundations and optimizing behaviour, but simultaneously emphasised

7440-444: The source of the word economy. Joseph Schumpeter described 16th and 17th century scholastic writers, including Tomás de Mercado , Luis de Molina , and Juan de Lugo , as "coming nearer than any other group to being the 'founders' of scientific economics" as to monetary , interest , and value theory within a natural-law perspective. Two groups, who later were called "mercantilists" and "physiocrats", more directly influenced

7533-406: The state or commonwealth with a revenue for the publick services. Jean-Baptiste Say (1803), distinguishing the subject matter from its public-policy uses, defined it as the science of production, distribution, and consumption of wealth . On the satirical side, Thomas Carlyle (1849) coined " the dismal science " as an epithet for classical economics , in this context, commonly linked to

7626-408: The subject of mathematical methods used in the natural sciences . Neoclassical economics systematically integrated supply and demand as joint determinants of both price and quantity in market equilibrium, influencing the allocation of output and income distribution. It rejected the classical economics' labour theory of value in favour of a marginal utility theory of value on the demand side and

7719-402: The subject or different views among economists. Scottish philosopher Adam Smith (1776) defined what was then called political economy as "an inquiry into the nature and causes of the wealth of nations", in particular as: a branch of the science of a statesman or legislator [with the twofold objectives of providing] a plentiful revenue or subsistence for the people ... [and] to supply

7812-471: The subject": Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. Robbins described the definition as not classificatory in "pick[ing] out certain kinds of behaviour" but rather analytical in "focus[ing] attention on a particular aspect of behaviour, the form imposed by the influence of scarcity ." He affirmed that previous economists have usually centred their studies on

7905-826: The subsequent development of the subject. Both groups were associated with the rise of economic nationalism and modern capitalism in Europe. Mercantilism was an economic doctrine that flourished from the 16th to 18th century in a prolific pamphlet literature, whether of merchants or statesmen. It held that a nation's wealth depended on its accumulation of gold and silver. Nations without access to mines could obtain gold and silver from trade only by selling goods abroad and restricting imports other than of gold and silver. The doctrine called for importing inexpensive raw materials to be used in manufacturing goods, which could be exported, and for state regulation to impose protective tariffs on foreign manufactured goods and prohibit manufacturing in

7998-488: The umbrella of formal schooling. According to the National Education Policy 2020 , the school curriculum and pedagogy will aim for the holistic development of learners by equipping them with the key 21st-century skills. Additionally, it also aims for reduction in the syllabus to enhance essential learning and critical thinking. The policy advocates for mother-tongue/local language/regional language as

8091-467: The war is not winnable or if the expected costs outweigh the benefits, the deciding actors (assuming they are rational) may never go to war (a decision ) but rather explore other alternatives. Economics cannot be defined as the science that studies wealth, war, crime, education, and any other field economic analysis can be applied to; but, as the science that studies a particular common aspect of each of those subjects (they all use scarce resources to attain

8184-515: The word Oikos , the Greek word from which the word economy derives, was used for issues regarding how to manage a household (which was understood to be the landowner, his family, and his slaves ) rather than to refer to some normative societal system of distribution of resources, which is a more recent phenomenon. Xenophon , the author of the Oeconomicus , is credited by philologues for being

8277-460: The work of Karl Marx . The first volume of Marx's major work, Das Kapital , was published in 1867. Marx focused on the labour theory of value and theory of surplus value . Marx wrote that they were mechanisms used by capital to exploit labour. The labour theory of value held that the value of an exchanged commodity was determined by the labour that went into its production, and the theory of surplus value demonstrated how workers were only paid

8370-554: The years in high school are voluntary. Completing higher secondary education or attaining an equivalent level is required before one may receive higher education (高等教育) at universities. Education is compulsory from age 3 to age 16, and then compulsory training until the age of 18. This law was passed during the Macron presidency and approved the law. At the end of the lycée cursus, is the French Baccalaureat exam. It

8463-421: Was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. The Reverend Thomas Robert Malthus (1798) used the concept of diminishing returns to explain low living standards. Human population , he argued, tended to increase geometrically, outstripping the production of food, which increased arithmetically. The force of

8556-892: Was productive. Smith discusses potential benefits of specialisation by division of labour , including increased labour productivity and gains from trade , whether between town and country or across countries. His "theorem" that "the division of labor is limited by the extent of the market" has been described as the "core of a theory of the functions of firm and industry " and a "fundamental principle of economic organization." To Smith has also been ascribed "the most important substantive proposition in all of economics" and foundation of resource-allocation theory—that, under competition , resource owners (of labour, land, and capital) seek their most profitable uses, resulting in an equal rate of return for all uses in equilibrium (adjusted for apparent differences arising from such factors as training and unemployment). In an argument that includes "one of

8649-437: Was recognised as well as the traditional Keynesian insistence that fiscal policy could also play an influential role in affecting aggregate demand . Methodologically, the synthesis led to a new class of applied models, known as dynamic stochastic general equilibrium or DSGE models, descending from real business cycles models, but extended with several new Keynesian and other features. These models proved useful and influential in

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