What Is Economics?

WELCOME TO YOU

I heartily welcome you to this post. I've written following points based on my knowledge. I may not provide full information but I'm sure you will understand the theme of subject.

------------------------------

It looks like a very simple question, but there is a lot to know while searching the meaning and about economics subject.

Economics is a Social science which means it focusses on the social issues. generally a social science studies and works for the welfare of the society.

It plays a vital role in Managing Resources,  Choosing wisely between wants and decision making process and also distribution of wealth.

So, it is the study about how humans, business organizations, governments, countries takes the decisions and uses the resources.

For example, if you have 100 R.S, generally the wants will be more but you will prioritize the spending money on the things which you needed at that time.

here the problem arises to spend the money and to take good decision.

Adam Smith (A Scottish thinker) is well-known as the father of this Logical subject Economics. However, He is highly influenced and inspired by French writers and philosophers.

Economics is the combination of Psychology, Mathematics, political science and history. That's why it is very logical and focusses on various significant matters of an economy in terms of both general and partial aspects.

Economics Looks Into The Matters Of:

1. Production: Converting the raw material/resources into semi finished or final goods.

2. Consumption: usage of a commodity by the consumer to obtain maximum satisfaction. here the man always tries to be rational.

3. Distribution: Process of distributing output amount or profit to all factors which are involved in the production process.

4. it also studies about firms,  markets, finance, businesses, cost, many more.

It enables a person to think about the world better. provides decision making and problem solving skills. 

definitions of economics:

In the late 19 century The Economics was renamed from "Political Economy" to "Economics" due to Alfred Marshall (An English economist, one of the influential neoclassical economists).

as a result it made more wider to think more productively by using different tools like mathematics, statistics etc..

*Definition:

* Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses. "Lional Robbins"

Types of Economics:

Economics is broadly divided into 

• Micro Economics
• Macro Economics

Micro Economics:

The word "Micro" is derived from Greek words, "Micros" which means Small. so, it is the study of smaller parts of an economy. it is also called as "the Price Theory" because it explains about production, supply, markets, distribution, demand etc.

Macro Economics:

The word/term "Macro" is derived from Greek words, "Macros" which means large.

hence it is the study of a single economy as a hole. it studies about aggregate supply, Aggregate Production, Aggregate income, etc. It is also called as "aggregate economy", "Income and employment theory" etc..

it also studies about the various factors which are effecting the economy and their solutions by using various methods and theories.

Skills gained by studying economics

Following are some skills mainly which are gained by studying economics. 

• clear understanding of the world.
• time management
• problem solving techniques.
• analysing skills and research 
• gaining knowledge in other fields of subjects like maths and accounting, governments and polity, business etc.
• logical thinking.
• commercial /business and cultural / regional awareness.

----------------------------