Scarcity School

  Sectors of an Economy: A Complete Guide Introduction Every economy is a complex system made up of various components working together. These components are classified into sectors based on the type of economic activity. Understanding the sectors of an economy is crucial for grasping how a country generates income, employment, and development. This concept is fundamental to economics and policymaking, and it affects everything from GDP to social structure. In this article, we’ll break down the sectors of an economy in simple terms, explore their importance, interlinkages, challenges, and relevance to India and the world economy. What Are Economic Sectors? An economic sector is a division of the economy based on the type of economic activity performed. These activities include producing goods, offering services, managing resources, and generating value. The economy is typically divided into three broad sectors: Primary Sector Secondary Sector Tertiary Sector Som...

  What is National Income? Definition, Types, Methods & Importance Explained Introduction National Income is one of the most fundamental concepts in economics. It acts like a report card for the country’s economic health. Just like an individual checks their income to know how much they earn, a country checks its national income to know how much it is producing, earning, and consuming. But national income is much more than just a number. It reflects development, employment levels, standard of living, and even policy decisions. This article will explore the idea of national income in detail—covering definitions, methods of calculation, uses, challenges, and relevance in the modern economy. What is National Income? In simple terms, National Income is the total value of all goods and services produced by a country during a year . It also includes the income earned by citizens living abroad, and excludes income earned by foreigners within the country. According to the United N...

  Jane Street Market Manipulation Case: Explained  Introduction Recently, a big news came out in the Indian stock market. A global trading firm called Jane Street was accused of market manipulation. SEBI, which is the regulator of financial markets in India, took serious action against them. This article will explain you the full case in very simple terms. We will cover: What is Jane Street What exactly happened Why SEBI took action What it means for normal investors What needs to change in the future Let us understand the full story in a simple and clear way. What is Jane Street? Jane Street is a global trading firm. It started in the year 2000 in the United States. Today, it operates in many big markets like New York, London, Hong Kong, and India. Jane Street is known for quantitative trading. This means they use computers, algorithms, and maths to trade in the financial markets. They do not advertise much. They do not manage public money like mutual ...

Air India Plane Crash 2025: Economic Impact of a Tragedy Introduction When a Disaster Meets Economics The Air India plane crash on June 12, 2025 , was a shocking and tragic event. A Boeing 787 Dreamliner flight from Ahmedabad to London Gatwick crashed shortly after takeoff, resulting in the loss of hundreds of lives. But the crash didn’t just make headlines for its human tragedy — it triggered major financial consequences. From stock market dips to tourism losses, the economic impact of aviation accidents goes far beyond the airline industry. This article explores how the Air India crash 2025 affected multiple sectors and what this teaches us about the real-world dynamics of aviation disaster economics . What Happened in the Air India Crash? The aircraft involved was a Boeing Dreamliner , one of the most advanced planes in commercial use. Just minutes into the flight, the plane lost control and crashed near the airport. The incident led to the grounding of several flights, te...

  Introduction College education is widely regarded as one of the most important investments in a person’s life. It promises higher income, better job opportunities, and increased social mobility. However, in many parts of the world, the cost of attending college has been rising at an alarming rate. From tuition fees and hostel charges to textbooks and technology requirements, the expenses involved can be overwhelming. In this article, we will explore the reasons behind the rising cost of college education from an economics perspective. Understanding why college education is expensive requires a deep dive into economic principles such as supply and demand, cost structures, government intervention, labor markets, and financial incentives. We'll also compare different country models, including India and the United States, to understand how policies and market dynamics shape educational affordability. The Principle of Supply and Demand One of the most fundamental concept...

  What’s is CRR and SLR? What are its impact on the Economy? Let's understand. What is CRR? Cash Reserve Ratio (CRR) is the minimum percentage of a bank's total Net Demand and Time Liabilities (NDTL) that must be maintained in the form of cash with the Reserve Bank of India (RBI). Why CRR Exists: The RBI uses CRR to regulate liquidity in the banking system. A high CRR means banks have less money to lend, which controls inflation. A low CRR means banks have more money to lend, which boosts economic growth. Example: Suppose a bank has ₹1,000 crore in deposits (NDTL), and the CRR is 4%. Then, ₹40 crore must be kept with the RBI as cash and cannot be used for lending or investment. This amount earns no interest, which makes CRR a powerful monetary tool — it directly impacts the bank’s ability to lend. Real-Life Example: Think of CRR like a mandatory emergency fund. You can't touch it, but it protects the system from risk. The RBI adjusts...

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