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 ?
They also urged the ECB to take action to help SMEs more directly and the real economy more widely.
The answer to the title's question is that the stock market may diverge from the real economy for a limited period, but this has no impact on the rationally placed investor.
The financial economy is now four times as big as the real economy, which means that the world's financial system rests upon a multitude of claims to money that no one has the money to actually pay
The relationship between the real economy and the financial sector is critical to economic stability.
75 percent to discourage banks from parking excess money at its accounts, support lending in the real economy and bring the rate closer to its US benchmark.
Anwar pointed out that the lending channel appears to be quite robust and is the key channel through which monetary policy is transmitted to the real economy in Pakistan.
In formulating monetary policy, it's absolutely essential that the Bank engages with the real economy, and we understand about company and consumer behaviour.
The report of the Economic Analysis and Forecasts Directorate of the Finance Ministry in Sofia released Monday studies the performance of the real economy sector in Bulgaria in 2008-2010.
Fifth, and very importantly, we need a financial system that works for the real economy, not the other way around.
MANAMA: Regional investors should look to the real economy and diversification in the future.
Regional investors should look to the real economy and diversification in the future, said Abu Dhabi Investment House (ADIH) managing director Rashad Janahi.
The stimulus given to a real economy by the fiscal policy (Mishkin, 2004), when the latter amplifies the 'area' and the 'depth' of the total fiscal debt acts as a deterrent not only for economic growth (generally speaking), but even for the effectiveness of fiscal policy itself.