jaris ojeran brohter thanks
your notes are really very useful and wiating for update with new notes

what is economics?
study of wealth (but remember study of money is called finance)

in books there are three main definitions of economics

1- Adam Smith (1723-1790)(father of economics) says "it is concerned with an enquiry into the nature and causes of wealth of nations."
https://en.wikipedia.org/wiki/Adam_Smith
https://en.wikipedia.org/wiki/The_Wealth_of_Nations
Early economists Cairnes, JB Say , FA Walker supported this definition of economics (according to them eco is mean and sordid science as it dealt with wealth, they called it dismal science)

2-Marshall (welfare definition of eco)
http://www.guesspapers.net/1194/mars...-of-economics/

it gives emphasis on 4 points
1-eco is not concerned with economic man but ordinary emotional man
2-eco does not study isolated individual as it is social science
3-wealth has secondary position and it is not be-all and end – all of all economic activities
4-eco studies only material requisites of well being and ignores non material aspects


3 – Robbins definition of eco:
http://www.guesspapers.net/1197/robb...-of-economics/

this definitios lays down 3 fundamental propositions
1- Ends are unlimited
2- Means are limited/scarce
3-Scarce means are capable of alternative uses
- He takes in account both material and non material welfare
-Accoding to him eco is positive science. Ity is not its funtions to say what is wrong or right. It is neutral science
Criticism
-Does not cover economic growth/development
-Does not explain unemployment problem
(as it tells us about scarcity not abundance)
-Human touch is entirely missing.

Economic System:
it is the social institution through which goods and services are produced distributed and consumed.

Socialism:
- Govt ownership and operation of major industry
- Provide variety of services as generous unemployment benefits, comprehensive health care for all citizens and public transit.
- It contains both features of capitalism and communism. It is transitional stage on way to communism

Capitalism:
-means of production are owned and controlled privately
-there is free and open market economy

Communism:
- Father of communism is Karl Marx.
https://en.wikipedia.org/wiki/Karl_Marx
https://en.wikipedia.org/wiki/Das_Kapital
- There is common opwnership of the means of production (by state)
- It works towards classless stateless ie egalitarian society. It is not allowed to possess private property.
- Distribution of resources based on need.
- Fewer people have a say how economy should operate/work.
- Restricted individual freedom and state coercion . and there is forec to meet unmet demands on individuals.

price floor vs price ceiling:

for graphs refer http://ingrimayne.com/econ/Allocatin...sRationer.html

ceilingQd >Qs)shortage

max price announced by govt for consumer. higher price charging become illegal. so in this setup black market pops up.
producer cant have monopoly.
govt controls rents and rationing because of ceiling. price is fixed below equilibrium price
this setup is usually used during wartime or femine ,so govt uses buffer stock
utility stores work in this setup


floor: (Qd<Qs)surplus

minimum price set by govt. it makes lower price illegal
it is used to protect labor prices/wages.
surplus is created , so govt usually fill its buffer stock.
wheat prices are fixed usually through this setup.

Economic growth: refers to incraese in total National Income
Economic Progress: refers to increase in per capita income
economic development: it is process wherby an economy 's real national income increases over in long period of time

Functions of banks

accepting deposits

• demand deposits (on current accounts no interest paid)
• fixed deposits , time deposits (hihger interest paid)
• saving deposits (between demand and fixed)

giving loans
remitting funds
agency function
investment
purchase and sale of securities
creation of credit
transfer of money
cheap medium of exchange
letter of credit


how do banks create credit?

through deposits

what are banks' assets?

cash
cash at central bank
money at call
bills discounted investment
liabilities of customers for acceptance
furniture and fittings

what are banks' liabilities

capital
reserve fund
deposits
acceptance for customers
liabilities of other banks and financial institutions


advantages of nationalization of banks

abolition od concentration of wealth
more security to deposits
financial benefits to govt
abolition of unnecessary competition
stable money market

disadvantages of nationalization of banks

deterioration in standard of services
bad debts and written - off debts
restriction on recruitment
low salaries
credit dispersal

have a look on IMF and worl bank
http://en.wikipedia.org/wiki/Interna..._Monetary_Fund
http://en.wikipedia.org/wiki/Interna...nd_Development

economic wealth: stock of net assets owned by households, firms and state.

backward bending supply curve:

http://en.wikipedia.org/wiki/Backwar...urve_of_labour
Labour Supply Curve is "backward-bending" - as wage rate reduces, the workers work more to earn the same total wage. But as per-hour wages reduce further, they actually work less since they value an hour's leisure more than the wage they receive by working.

Bilateral monopoly: one buyer and one seller

cartel:
http://en.wikipedia.org/wiki/Cartel
a group of firms acting together to cordinate output decisions and control prices as if they were single monopoly

tariff:
a tax on imported goods

tax shifting: occurs when a tax levied on sellers of a good causes the market price of good to increase.

secondary reserves: govt securities held by banks

stagflation:
http://en.wikipedia.org/wiki/Stagflation

overheated economy: an economy in which the actual unemployment rate is less than the natural rate of unemployment.

these are two important topics. i have notes on them but these articles on net have better scope and are really to the point

1- vicious circle of poverty.

http://www.eduinn.pk/2009/11/vicious...f-poverty.html
http://www.preservearticles.com/2012...f-poverty.html
http://answers.yahoo.com/question/in...4034322AAn0s4q

2- rostows five stages of development:
http://en.wikipedia.org/wiki/Rostow's_stages_of_growth
for graph---- https://www.e-education.psu.edu/geog030/node/194

@Jaris orejan : I have qualified written test of SPSC commerce lecturership therefore kindly share your experience of interview for Economics.
How many questions are asked from subject and from GK.?
I've done MBA.

@rashid
maximum 30 min
both , Gk and subject information ,are important at interview. concentrate on pakistan affairs, islamiat, current and everyday science. as fifty percent of your time will be reserved for GK. if you are somewhat weak in your subject or you dont give good answers you expect them to ask you more question from GK to balance.
caution: dont divert their attention to you personally by giving silly/astonishing answers. they will crush you. just be to the point and say SORRY if you dont know anything.
wear good out fit (two piece), shave, polish shoes, trim nails, brush your teeth. and practice your oral power before mirror daily. it will work Inshallah