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 classic literature ?
At last they gave it up as hopeless, and shook the dust of the shorthand schools, and the polytechnics, and the London School of Economics from their feet for ever.
Complications ensued; but they were economic, not romantic.
A new kind of man in the coloured world," I said to myself--"a new kind of man surely if he looks upon his task as an economic one instead of a theological one.
But to teach the Negro to do skilful work, as men of all the races that have risen have worked,--responsible work, which IS education and character; and most of all when Negroes so teach Negroes to do this that they will teach others with a missionary zeal that puts all ordinary philanthropic efforts to shame,--this is to change the whole economic basis of life and the whole character of a people.
He never talked shop out of class and committee rooms, except later on, when his books showered him with distasteful public notice and he yielded to the extent of reading occasional papers before certain literary and economic societies.
It was Freddie Drummond, irreproachably clothed and comported, seated at his study desk or facing his class in Sociology 17, who saw Bill Totts, and all around Bill Totts, and all around the whole scab and union-labour problem and its relation to the economic welfare of the United States in the struggle for the world market.
But he had a certain clear way of stating the abstruse in simple language, was a born expositor and teacher, and was not above the soap-box as a means of interpreting economics to the workingmen.
Also, his earnings were added to by the royalties from the small sales of his own economic and philosophic works.
We have, from a thorough study of economics, decided to enter upon this business.
The old-time Feudal Baronage ravaged the world with fire and sword; the modern Money Baronage exploits the world by mastering and applying the world's economic forces.
While much had been done in England in tracing the course of evolution in nature, history, economics, morals and religion, little had been done in tracing the development of thought on these subjects.
The institute helps aspiring candidates to learn and understand all the aspects of modern economics more comprehensively so that they can score better in the competitive exams.

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