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 ?
As expected, places where the private economy thrived after the reform were also the ones where private activities had been the most resilient in the Mao period (1949-1976), suggesting strong path dependence in Zhejiang's capitalism.
It is only with a stronger private economy and with private investments that Greece will be able to achieve a balanced budget in the medium and long term," it added.
Every dollar in lower spending means one less dollar taken from the private economy in borrowing or future tax increases.
schools, churches and cultural groups to visit Cuba, and boost the amount of money Americans can send to the island to support its growing private economy.
There will always be differing views about Burma but it is now felt that the controlled entry of visitors will now help create and sustain jobs for locals and boost the private economy.
Yes, this would be terrible: it would mean that the private economy never recovered.
Broadly speaking, the 11-year period after the 1991 peak in Japanese real estate prices became a lost decade of economic stagnation by virtue of a generally delayed, weak and uncoordinated policy response, accompanied by a delayed restructuring of the private economy.
And the Massachusetts Film Commission came to the defense of tax credit programs, asserting, "Without exception, every major study of every film tax credit program in every state in the country has reached the same basic conclusion: The benefit to the private economy far outweighs the public cost of the credit.
But, as public expenditure is cut, a thriving private economy will become ever more important to our future success as a city region.
Like the US and Japan, Europe faces a weak private economy, but unlike the former two, cutbacks in the public sector are also on the horizon.
Second, since the Republicans crashed the private economy into the ditch, there is no private economy strong enough to pull itself out.
If it's challenging to understand the performance and direction of the private economy, the crystal ball on municipal government finance isn't much clearer.

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