Question

Many people have different concepts or ideas about the study of economics. It would be interesting to know what are your thoughts as it relates to the study of economics and its importance in society.

Answer 1

Economics:

Economics is a study that states that how the economies of various countries work. It is a part of social science which studies the production of goods and services, its distribution, and its consumption.

There are two parts of economics:

Microeconomics: Micro means small, so this studies the basic elements of economics which includes demand, supply, market, consumers, producers, sellers etc. It also includes firms and households.

Macroeconomics: Macro means large, so this studies economy at a large scale. It includes income, expenditure, profit, loss, consumption, saving, taxation etc.

Study of economics:

Economics is studied to know how well the economy works. It tells that how the economy uses its available resources and it produces useable goods for the use of the citizens. The study of economics has two key points:

1. There is always a scarcity of resources

2. The economy should use the resources efficiently and effectively.

The study of economics can be said as a study to know how the economy satisfies the needs of the economy by utilizing its available resources in best possible manner.

Impact of study of economics on society:

The economists study the economics in two scenarios:

1. Assuming economic event occurs

2. Economic event not occurs

It uses ex-post (before) and ex-ante (after) data to analyze the same.

It measures the effect of scenarios on business turnovers, business profits, creation of jobs, payment of salaries and wages. It studies the impact of new policy on the economy. It studies the GDP of the country and its value impact on the economy. It studies the impact of income on labor. It is a measure of personal incomes. It studies the impact of employment on the society, which studies the creation of new jobs for the citizens. It studies the output impact, which studies the increase in business revenue of the business.

As per my thoughts on economies and it studies is vast mechanism to study the wide system of economic, the things that affect its wokring and also its impact on the society as a whole.