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Economics of Mahaveer*
- Prof. M.C. Singi
Economics is a dynamic science and has been evolving continuously. It has, however, core concepts which have universal applicability. Every human society has to confront and answer three fundamental and interdependent questions. What commodities to produce, how shall they be produced and for whom shall these be produced? These have been the core of dynamic economic science. While these problems have been universal, their solutions have varied from place to place, person to person and from time to time. The question of what, how and for whom arises because of scarcity of resources. Even the concept of optimal utilization arises because of their finite nature. No society has reached as yet an utopia of limitless possibilities. Some of the resources, however, could increase over time and for others technology, innovation and ideas could increase production potential. But none-the-less appropriate allocation has remained central to economics. Market as the arbiter and allocative mechanism
Some economists have visualized market as the institution, which solves this puzzle. Rational producers and consumers motivated by their self-interest strike the exchange. Modern day mainstream economist largely believes in this invisible hand. But there are others who consider the market as an imperfect institutions, impersonal and inhuman at times, because it weights individuals in terms of their material possessions. Collapse of the Soviet Union has, however, made these dissenting voices less louder and that of a minorty.
Market is getting revisited now and a new rationale seems to be emerging. This reminds one of the famous worlds of Adam Smith. He said, "Every individual neither intends to promote the general interest nor knows how much he is promoting it. He pleads only his own security, his own
AH Y511 97791-79, 2001
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