'ECONOMY ' denotes everything related to the manufacture and distribution of goods.Now what are goods?Goods are items and services that we need for a living,such as food,clothes,
houses,cars,television sets,mobile phone,the list is end less.so are services like ,schools, hospitals,hotels, colleges ,cinema,haircut,bar,
taxi services etc.

In this type of economy ,only goods that are needed by buyers are supplied by the manufactures .If the supply is less than the demand ,it leads to price rise.Buyers can not afford to purchase goods ,as a result demand reduces and the prices come down..So ,the market regulates itself .This is the plus point of this economy.Most of the European countries and the USA has free market economy.
In a ' managed economy ' ,the state decides ,the type and the amount of goods that will be produced .It also determines the price of goods and the wages of workers.The Soviet Union and the GD R had the managed economies earlier.The draw back of such a economy is that it slows down the economic development.o
SHARE- The total amount of investment in a company is a stock.This is divided into shares of specific values.
Companies sell these shares to the public to raise money.By selling shares ,the Company , gets money and the buyer gets a share of the assets of the company and can claim a corresponding part of its annual profit..Shares are traded - brought and sold - at a stock exchange .The major stock exchange are Tokyo stock exchange, The London stock exchange,Shanghai stock exchange.etc.The value of a particular share rises if many people buys it in the share market.The value of a share goes down ,if many people sell it ,in the share market.The value of shares goes up and down by the market forces.
SERVICES IN THE ECONOMY -Services are non -material goods.That is those things ,for which we pay ,but cannot ' 'touch'. These includes ,consultation services,a perm in a saloon
repair of television,servicing of cars,dry cleaning services,and the service in a restaurant .Now a days people prefer to work in the service industries as they are more secure.They cannot be replaced by machines.Now a days many new service industries are launching and running successfully.
ECONOMY
houses,cars,television sets,mobile phone,the list is end less.so are services like ,schools, hospitals,hotels, colleges ,cinema,haircut,bar,
taxi services etc.
In a ' managed economy ' ,the state decides ,the type and the amount of goods that will be produced .It also determines the price of goods and the wages of workers.The Soviet Union and the GD R had the managed economies earlier.The draw back of such a economy is that it slows down the economic development.o
SHARE- The total amount of investment in a company is a stock.This is divided into shares of specific values.
Companies sell these shares to the public to raise money.By selling shares ,the Company , gets money and the buyer gets a share of the assets of the company and can claim a corresponding part of its annual profit..Shares are traded - brought and sold - at a stock exchange .The major stock exchange are Tokyo stock exchange, The London stock exchange,Shanghai stock exchange.etc.The value of a particular share rises if many people buys it in the share market.The value of a share goes down ,if many people sell it ,in the share market.The value of shares goes up and down by the market forces.
SERVICES IN THE ECONOMY -Services are non -material goods.That is those things ,for which we pay ,but cannot ' 'touch'. These includes ,consultation services,a perm in a saloon
repair of television,servicing of cars,dry cleaning services,and the service in a restaurant .Now a days people prefer to work in the service industries as they are more secure.They cannot be replaced by machines.Now a days many new service industries are launching and running successfully.
ECONOMY
Comments
Post a Comment