February 24, 2012

Principles of Economics & Bangladesh Economy

Banking Diploma Courses in Bangladesh under The Institute of Bankers, Bangladesh (IBB)

Principles of Economics & Bangladesh Economy-JAIBB

Q.1 Give an appropriate definition of Economics.

Ans.: The term economics is derived from two Greek words “OIKOS” and “NEMEIN” meaning the role or law of the household.Economics is the study of now people and society, choose to employ scarce resources with or without the use of money, that could have alternative ;uses in order to productive ;various commodities and to distribute them for consumption, now or in the future among various persons and groups in society.

Q.2 How Economics is a Science and Arts?
Ans.: The term science has been defined as the systematized body of knowledge, which traces the relationship between cause & effect. Applying this definition to economics we find that economics is that branch of knowledge where the various facts relevant to it have been systematically collected, classified and analyzed.
An arts is a system of rules for the attainment of a given end. An art isapplication of knowledge and practical application. Economic has all these feature of being an art.

Q.3 How Economics is as a Normative and Positive Science?

Ans.: It deals with thing as they “ought to be”. It has no objection to discussion the moral rightness or wrongness of things. Economics is not only explaining facts as they are but also justifies them. Positive Science deals with things as they are means “What is”. It explains their causes and effect but it remain strictly neutral as regards ends, it refuses to pass moral judgments.

Both can be distinguish as follows :

            Basis                                 Positive                                                   Normative
1.Expresses                             What is                                                    What ought to be
2. Based on                             Cause & effect of facts                             & Ethics
3. Deal with                             Actual or realistic situation                         Idealistic situation
4. Value judgment                    Are not given                                            Are given