ntrod    tion      1.3
     starting with the definition of the subject. But the   economics AnD the economy
     definition, at times, or even most of the times,
                                                            The relation between economics and the economy,
     becomes very abstract, jargon-laden and technical.
                                                            simply saying, is that of theory and practice. While
     Such a definition might not give a proper feel and
                                                            the former is a discipline studying economic
     understanding of the subject to a person who does
                                                            behaviour of human beings, the latter is a still-
     not belong to economics. Most of the students of
                                                            frame picture of it. Economics will come out with
     economics face difficulty in understanding the
                                                            theories of market, employment, etc., and an
     complete meaning of the definition. That is why
     a very general and layman’s definition is needed.      economy is the real picture of the things which
                                                            emerges after the application of those theories.
          Human beings in their day-to-day lives are
     busy doing so many things. There are different              Economy is economics at play in a certain
     activities we are involved in throughout our lives.    region. This region is best defined today as a
     These activities fall under different categories.      country, a nation—the Indian Economy, the
                                                            Russian Economy, the French Economy, etc.
          Economics studies the economic activities
                                                            Economy as such means nothing. It gets meaning
     of mankind. Similarly, political, social and
                                                            once it is preceded by the name of a country, a
     administrative activities of mankind are studied
                                                            region, a block, etc. When we say developed
     under Political Science, Sociology and Public
     Administration, respectively. That is why these        economies, we mean economies of developed
     disciplines are broadly categorised as humanities      countries.
     as all of them study human activities. There are            Countries of the world might be facing
     many more specialised human activities which are       some common economic challenges. At the same
     studied under many more disciplines.                   time, they might be facing some highly specific
          Which activities of mankind are economic          challenges. Economists, during the period of
     activities? The activities which involve profit, loss, evolution of economics, have suggested some
     livelihood, occupation, wage, employment, etc.,        fixed number of theories and methods of solving
     are economic activities. Economics studies all these   those economic challenges. Now it depends upon
     activities. Today, economics has many branches         the choice of the countries as to which set of
     and studies highly diverse subject matters, right at   principles and theories they select for solving their
     the global, macro and micro levels.                    economic challenges. Further, many countries
          Why do some people go for fuel-efficient          selecting the same remedy and tools to fight the
     cars while others go for fuel-guzzling sports cars?    same problems might have similar or dissimilar
     Why the poor are poor? Is capitalism doomed to         results during a given period. At the same time,
     intensify economic inequality? Will the process of     two economies selecting different tools to solve
     globalisation be able to bridge the poor–rich divide   the same economic problems might experience
     and have a universal homogenising impact on the        the same results or completely different results.
     world? Such varied and many more questions             Why is this so?
     fall under the domain of economics. These days              Basically, economic theories are expectations
     we also can see information technology giving a        of human behaviour about their economic
     typically new dimension to economics.                  activities and as human behaviour depends greatly