Lecture 02: Definition and Basic Concepts I

[Music] [Music] In this video we will talk about the definition of economics, so the first definition is that economics is a study, what is the study of, location is limited, second terms are wants and desire, it is a matter of understanding that we have desires. Why are we talking about wants and desires? Why are we not talking about necessity? After that we will talk about scarcity which represents limited resources. After that we will talk about allocation which we call vinithan in Hindi and after that we will talk about person. You must be thinking that what is the need to talk about the person. Here our meaning is a little different from the person which we give. If we do it in the word today, then let us understand the resources, but before understanding the resources, we will try to understand another word. This word is commodities. What do we understand by commodity? So commodities are those things which are used to satisfy the desires of the people. The thing which satisfies us, the thing which gives us happiness, we call those things as objects. If we go into a little more detail, then we can understand about two types of objects, these two are foolish and Intangible objects are called Tangible. Intangible are called Intangible. What is there between the two? Idol objects are physical, they have physical existence, they are physically present. Intangible objects, whatever they are, are not physically present. If we understand this, then we can make this recording in our If we are doing it through laptop, then laptop is there because we can see it, touch it, we can read it, but what we are teaching is also a kind of object, it is an abstract thing, it will satisfy you a little, it is giving you knowledge. So this is also a kind of object, we can call it an abstract object that what is being studied does not have any physical form, hence there are two types of objects, tangible and intangible goods. Sometimes we mean the object by which it is. Only tangible things are done and we serve intangible things. Nowadays you must have heard that the Government of India has a Goods and Services Tax, which is called Goods and Services Tax in Hindi. By this they mean both tangible things as well as intangible things. If you are going, then there may be a little conjuring in incense that if we are talking about an object, then whether we mean a tangible object or any object, then this is a thing, it will become clear to you from the context, where will you understand this thing? You should understand all these things from the context in which it is being used. We do interchange these words, so be a little careful about it. Now the things which are very useful because they give us happiness and make us happy always. If they do this, then how are they produced? The things that we are talking about like studies, we are talking about laptops, they did not come by themselves, they were created, they were produced, so the things which we use in the production of things. We call them resources. These are the primary things from which we get goods and services. So we can talk about different types of resources. First of all we will talk about four resources. The first one is natural resource which we call in English. In India, we call it Natural Resources, the second asset is called Labour, the third is Physical Capital, which we call Physical Capital, and the fourth is Human Capital, which we call Human Capital. If we talk about natural resources, an example would be Lance Joe's land. Water, minerals, oil and wood, so if we take an example of farming, if we want to do farming, if we want to do paddy farming, then what are the things we will need, this will help us in understanding the resources, so first of all For farming we need land, we need learning, we need water for irrigation, if we are running a hall then we will need wood to build the hall, if we are taking help of tractor then we will need wood to put it in it. Petrol or diesel will be needed for this, there will be oil which is available naturally but we will also talk about where the tractor came from and similarly minerals can also be used in some things, so after this we move on to capital created resource, another name of capital. If we have manufactured resources, then we can make a tractor a manufactured resource because we do not get it from nature. How a tractor is made, how a tractor is made, then natural resources, natural resources and further we will talk about if a tractor is made by mixing labor, then we will make a tractor. One very important thing is the structured resources. Apart from tractors, we also need many manufactured resources for farming. If we take all the manufactured resources, then we can divide them into two parts. The first part is permanent capital, which we call fixed capital. And the second one is working capital which we call working capital, so in permanent capital we have tools, machines, buildings. Why do we call it permanent in India because once something is being manufactured, it is not that In that, the tools, machines or buildings will be completely consumed. These tools and machines can be used to manufacture some other things, so in incense, they are permanent capital because they can be used again and again. In the same way, our work is steel capital. For example, while doing farming, we need fertilizer, then we need Abhij for fertilizer, then we need cash currency for that, then cash currency is a kind of working capital, which helps us in farming or any other work. In the same way, the raw waste is also a working capital. Both the raw waste and the cash currency are consumed during the manufacturing process and get exhausted. So in this sense it is a little different from the fixed capital. Next There are two resources, labor and human capital, they can be taken together and we can also live separately, so if we do this division, labor and human capital, then there can be two categories of labor: Skilled labor. Skilled labor is skilled. They are skilled in agriculture, they are efficient, they provide support to skilled labor, they provide a helping hand, so there is a lot of need of labor. As you would imagine, if the farming is being done either by hand or by tractor. There is always one man required to operate a plow or a tractor, so labor is required in this sense, there is only one very important resource and the second is human capital, which we entrepreneurs can sell on an entrepreneurial scale. This entrepreneur has less capital. Collect all the resources and use them. If we go to manufacture any good or service, then it needs a lot of human capital in science. All the other resources will remain under siege if there is a lack of interpreneal entrepreneurial labor. So we also need this a lot, so in this way we understand about resources. Resources are used in the production of goods and services and the same goods and services supply us, satisfy us, provide us with comfort and satiate us. So there is a great need for these, thanks, when we talk about goods and services, then we should understand one more thing that goods are, first we understood that they can be in a stupid and abstract way, but let us understand in another way. Sometimes we talk about three different types of goods, they are called goods, one is called good, the other is called bait, the third is called neutral. Again, the way they are used can be confusing for the first learners, but As you progress, you will assimilate this thing well and it will never confuse you. Typically, by goods we mean goods which give us happiness and keep us satiated, but sometimes we also use pads. Let us talk about those things which cause us sorrow and less of which give us more happiness, like pollution can be an example, excess of pollution is bad for us, so we will call it pollution, but it can be easily converted into goods. If we can reduce pollution by using goods instead of pollution, then by using our brain we can easily convert these goods into goods and neutral goods are those which do not make any difference to us if they increase or decrease. An example would be, do I like a fruit or not, whether it is more or less, it will not make any difference to me, then that fruit will be neutral good for me, so here is the discussion about goods and services, now we will come to the next term. let's go [music] [music] [music]