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 ?
BEIRUT: Fadi Gemayel, president of the Association of Lebanese Industrialists, called Thursday for the adoption of a wide and complete economic strategy in a bid to boost industry and other sectors of the economy.
The Prime Minister insisted the coalition would stick to its economic strategy despite Business Secretary Vince Cable suggesting it was time for a rethink.
We can offer people a sense of hope that we can turn round the economic strategy of this government which after three years people can see is not working.
In its response to the Northwest Development Agency's draft economic strategy for the region, software giant Microsoft focused on small and medium enterprises (SMEs), and education and skills.
Here we use the block entry method in order to examine the influence of different aspects of maternal characteristics on explained variance in the child development outcome measures--as well as the unique contribution of the economic strategy variables.
They will also find a wide-ranging exploration of current issues and a generally thoughtful approach to the many practical and theoretical considerations posed by Korea's new economic strategy.
He hopes to carry out an economic strategy that will privatize half of the country's national industries and create 500,000 new jobs in the process.
But he added: "This economic strategy should be viewed as the first step on the journey to moving the county to a high productivity economy.
Business lobby groups have welcomed the announcement by regional development agency Advantage West Midlands (AWM) that tackling business crime will be a key target in its new economic strategy for the region.
The workshop was a signal to start the implementation of the National Economic Strategy.
Council leader Mike Whitby and colleagues in neighbouring authorities will be asked to draw up an economic strategy for the West Midlands - helping decide how regeneration funding of pounds 400million a year is spent.
Mr Ramsbottam, who was highly critical last week of the Government's decision to take pounds 34m from One North-east's budget, saying it could jeopardise regeneration projects, urged the Government to give the RDA greater freedom to pursue ambitious goals in the regional economic strategy, by removing what he called 'unnecessary responsibilities'.