{"id":5121,"date":"2021-02-19T14:05:51","date_gmt":"2021-02-19T08:35:51","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?page_id=5121"},"modified":"2024-03-14T12:23:40","modified_gmt":"2024-03-14T06:53:40","password":"","slug":"economic-growth","status":"publish","type":"docs","link":"https:\/\/pwonlyias.com\/stage\/docs\/economic-growth","title":{"rendered":"Economic Growth: Policy Challenges and Opportunities"},"content":{"rendered":"\n\n\n
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Economic Growth: Policy Challenges and Opportunities<\/span><\/strong><\/span><\/h2>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Economic Growth: Macroeconomic and Microeconomic Perspectives<\/span><\/strong><\/h3>\n

Economics is the social science that studies the production, distribution, and consumption of goods and services.<\/span>\u00a0<\/span><\/p>\n\n\n\n\n
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Macroeconomics:<\/span><\/p>\n

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It analyses the entire economy (meaning aggregated production, consumption, saving, and investment) and issues affecting it, including unemployment of resources (labour, capital, and land), inflation, economic growth, and the public policies that address these issues (monetary, fiscal, and other policies).<\/span><\/td>\n<\/tr>\n
Microeconomics:<\/span>\u00a0<\/span><\/td>\nThe study of the economic behavior of individual \u201cagents\u201d such as particular companies, workers, or households.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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What are the various types of economies and how do they impact Economic Growth?\u00a0<\/strong><\/span><\/h3>\n\n\n\n\n\n\n
TRADITIONAL ECONOMIES<\/span><\/td>\n\n
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  • A traditional economy will use the barter system and has no concept of currency or money.<\/span><\/li>\n
  • Such economies believe in only producing what and how much they require. They find no need to produce any market surplus.<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
MARKET <\/span>ECONOMY<\/span><\/td>\n\n
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  • There is no involvement or interference from the government or any such controlling power.<\/span><\/li>\n
  • The entire economy is determined by the participants of the economy and the laws of demand and supply.<\/span><\/li>\n
  • Example \u2013 USA, Hong Kong<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
COMMAND ECONOMY\/PLANNED ECONOMIES<\/span><\/td>\n\n
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  • There is one centralized power- In most of the cases, the government.<\/span><\/li>\n
  • The government makes all decisions regarding the economy. The price will also be determined by it.<\/span><\/li>\n
  • Example \u2013 Cuba, China<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
MIXED ECONOMY<\/span><\/td>\n\n