economics is a knowledge of social science deals with production, manufacturing, consumption, saving, shifting of wealth etc. It teach that how people prepare themselves in order to allocate scarce resources in order to produce goods and services that will satisfy the unlimited and multiplying wants and needs of man.
Types of Economics
- Microeconomics
- Macroeconomics
Microeconomics:
Microeconomics focus point is the activities of industries and individuals like the dynamics between sellers and buyers, lenders and borrowers.
Macroeconomics:
The part of economics, Macroeconomics focus a much broader aspect by analyzing the economic activity of an international or whole country market. Its main focus point is large scale or general economic factors, such as interest rates and national productivity.
Importance of Economics
Economics play a vital in in our life. The economic activity is human being essential because activity and Laws of all society are the result of it is economic development and conditions.
why economics is important?
- To dispute resources
- to achieve social efficiency
- forecasting for economy
- tell about fixing the failure
- help to understand consumer behavior
- Helps to take effective decisions
- opportunity cost of decision
Economic system
An economic system could be a system of production, resource allocation and distribution of products and services among a society or a given geographical region. Most importantly AN financial set-up could be a variety of system. The mode of production could be a connected construct. All economic systems have 3 basic inquiries to ask: what to supply, a way to turn out and in what quantities and WHO receives the output of production.
economic systems study the varied agencies and establishments area unit joined to one another, It including property rights and also the structure of management. The analysis of economic systems historically targeted on the dichotomies and comparisons between market economies and planned economies and on the distinctions between capitalism and socialism.[3] later, the categorization of economic systems distended to incorporate alternative topics and models that don’t adjust to the standard duality. nowadays the dominant sort of economic organization at the planet level is predicated on market-oriented mixed economies.
