Economic Laws

What is Law? The system of rules which a particular

country or community recognizes as regulating the actions of
its members and which it may enforce by the imposition of
penalties

Economics like other subjects has its own set of

generations . In everyday life, we see man is
always busy in satisfying his un-limited wants with
limited means. In doing so, he acts upon certain
principle.
These principles which an average man follows,
when he is engaged in economic activity are
named as economic laws.

Following are the main characteristics of economic laws:

1. Lack of exactitude:
The nature of economic laws is that they are less exact
as compared to the laws of pure science, like physic,
chemistry etc. the economist cannot predict with
surety as to what will happen in future in the economic
domain.
2.Economic laws are hypothetical:
Economic laws are hypothetical as they are based in
certain condition. If these conditions are fulfilled wise
they will not hold good.

Economics laws are conditional:

That is why, at the end of the statement of each
economic law it is always state that all other factors
remain constant.

3. Economic laws are qualitative not quantitative:

Economic laws are qualitative in nature. They cannot be
expressed in quantitative term. The laws of economics only
tell the direction of change not the amount of change. E.g.
according the laws of demand, the quantity demanded arises
inversely with price. We do not say 10% rise in price will lead
to 20% fall in quantity demanded.
4.Applies on the average in normal conditions:
Economics laws do not deal with any particular firm,
commodity etc. it takes an average economic unit. It also
applies in normal conditions.
Economics Laws are statement of Tendencies:
Economics laws represent economic tendencies of the people
in general. Therefore they are merely statement of tendencies
or statistical probabilities.
5.Laws of economics are exact than the laws of other
social sciences.

importance of studying of economics

Importance of the Law

It has certain theoretical and practical importance.
1.Theoretical importance:
Following are main theoretical importance of studying
economics.
i.Broaden outlook:
The knowledge of economics broadens our outlook,
sharpens our intellect inculcates in its the habit of
balanced thinking.
ii.Increases our knowledge:
The study of economics enhances our knowledge. We
can easily understand our economic problems. E.g.
changes in prices, export and import policy etc.

Practical importance:
The practical importance of economics is greater than its theoretical advantages. These
advantagescanbelookedfromindividualandcommunitypointofview.

1.Useful of the consumers:

The study of economics is very useful for consumer. If the consumer knows the
principleofeconomicshecanadjusthisexpenditureinabetterway.Actinguponthe
low of equi-marginal utility, he can get maximum satisfaction out of his available
resources.
2.Useful for the producer:
Economicsisveryusefulfortheproducers.Itguideshimthathowheshouldcombine
thefourfactorsofproductionandminimizethecostofproduction.
3.Importance for a common man:
The study of economics is very useful for a common man. It enables him to
understandgovernmentpolicies.
4.Importance for the businessman:
Abusinessmancanlearntheprincipleofbusinessmanorganization.Hewillbeable
toplanhasbusinesswellandtakenhisbusinessproblemsuccessfully.

5. Useful for finance minister:

Thy study of economics is very important for the finance minister. He
hastoraiserevenuebyimposingtaxesontheincomeofthepeoplefor
meeting the necessary expenditure of the government. Economics
guideshimthathowheshouldframetaxpolicyandmonetarypolicy.
6. Poverty and development:
The study of economics helps in removing poverty from the country.
developing countries are facing many problems like un-employment,
over population, low per capita income etc. economics is immensely
importantinsolvingthoseproblems.

Science, Engineering, and

Technology
Three disciplines, one world

Science

Engineering

Technology

. . is the body of
knowledge, systems,
processes, and artifacts
that results from
engineering

. . . can be used to
. . . seeks to describe
. . . seeks solutions for describe almost
and understand the
societal problems, and anything made by
natural world and its
needs, and wants
humans to solve a
physical properties

problem or meet a need

. . . uses a processthe
. . . uses a processthe
engineering design
scientific methodto
. . . results from the
processto produce
generate knowledge
process of engineering
solutions and

technologies
Engineering aims to
Technologies are
Scientific knowledge can produce the best
anything made by
be used to make
solutions given
humans to fill a need or
predictions
resources and
desire
constraints
. . . is the body of
knowledge of the
physical and natural
worlds

. . . is the application of
knowledge in order to
design, build, and
maintain technologies