economics

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Economics

Economics

The study of how people produce, trade, and use goods and services. Economists look at how different actors, such as individuals, companies, and governments, interact with one another to maximize the fulfillment of their needs through the use of scarce resources. Economics also includes the study of supply, demand, and the relationship between the two. There are a number of schools of thought within economics. Some major schools are classical economics, which considers the sources of production as well as the role of the Invisible Hand of the market, and Marxism, which considers the exploitation of labor by holders of capital. Other, modern schools of thought include Keynesianism, which emphasizes the role of demand as opposed to supply, and monetarism, which promotes the use of the free market and the considers the role of money supply in economic growth. See also: Macroeconomics, Microeconomics.

economics

the study of the way in which countries endowed with only a limited availability of economic resources (natural resources, labour and capital) can best use these resources so as to gain the maximum fulfilment of society's unlimited demands for goods and services. Economics has a macroeconomic and a microeconomic dimension. Macroeconomics is concerned with the overall efficiency of resource use in the economy, in particular the achievement of full employment, and with the growth of resources over time (see ECONOMIC POLICY). Micro-economics is concerned with the efficient supply of particular goods and services (see MARKET SYSTEM).

economics

the study of the problem of using available FACTORS OF PRODUCTION as efficiently as possible so as to attain the maximum fulfilment of society's unlimited demands for GOODS and SERVICES. The ultimate purpose of economic endeavour is to satisfy human wants for goods and services. The problem is that whereas wants are virtually without limit, the resources (NATURAL RESOURCES, LABOUR and CAPITAL) available at any one time to produce goods and services are limited in supply; i.e. resources are scarce (see SCARCITY) relative to the demands they are called upon to satisfy. The fact of scarcity means that we must always be making CHOICES. If, to take a simple example, more resources are devoted to producing motor cars, fewer resources are then available for providing hospitals and other goods. Various ECONOMIC SYSTEMS may be employed to allocate resources and deal with such choices.

Economics has a microeconomic and a macroeconomic dimension. Microeconomics is concerned with the efficient supply of particular products. Macroeconomics is concerned with the overall efficiency of resource use in the economy, in particular the achievement of FULL EMPLOYMENT of current resources and the growth of output over time. See OPPORTUNITY COSTS, PRODUCTION POSSIBILITY BOUNDARY, EFFICIENCY, PRICE SYSTEM, ECONOMIC GROWTH.

References in periodicals archive ?
based entrepreneurs expect their country's current economic environment to improve, only 16% expect it to deteriorate.
The chief economist at India-based Yes Bank has said that India needs to have a strong economic environment in order to encourage growth.
The main factor limiting the activity in the branch continues to be the uncertain economic environment, followed financial problems.
Deteriorations in the economic environment for our customers, in particular property and construction, means we have made further prudent provisions for potential bad debt.
Summary: Morocco is an "extremely attractive" country for investments, thanks notably to its political and economic environments, Director General of France Telecom Stephane Richard said.
CHARLOTTE, North Carolina: US regulators said total losses from large loans at banks and other financial institutions nearly tripled to $53 billion in 2009, due to a deteriorating economic environment and continued weak underwriting standards.
Mr Latham said: "Solicitors are facing a challenging regulatory and economic environment so it's vital that they can access a locally-based banking contact with an in-depth knowledge of the sector and their specific requirements.
The Third Annual Winter Forum will continue to showcase the cutting-edge strategies utilized by the most successful funds and investors to thrive in the current economic environment.
It's important that today's entrepreneurs discover the hidden opportunities in this economic environment.
Due to the success of this strategy, we expect the overall profitability of our piano business to be equal to last year, despite the difficult economic environment.
Today, given world events and the more difficult world economic environment, current year targets do look increasingly challenging," Chief Executive Paul Walsh told the group's annual general meeting.
The rating action is prompted by Moody's growing concern that the current deteriorating economic environment may continue to pressure MHI's earnings and financial profile over the intermediate term,'' the U.

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