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What are economic studies?
- Economics is that discipline of science which studies human behaviour as a connection between given ends and scarce means which have alternative uses.
- Economic focus on the behaviour and interactions of economic agents and how economies work.
- It is also a science that studies the production, distribution and consumption of goods and services.
Branches of economics?
It's a branch of economics that studies the behaviour of the economy as a whole relationship is considered between broad economic aggregate such as : National income, Employment, Taxation
It focuses on economic stabilization whereby the government policy is used to moderate the business cycle and encourage real economic growth.
It studies the behaviour of an individual alone, decision making units, consumer resource owners, business firms as well as individual markets.
Benefits of Study of economics
- It helps in better understanding of the economy.
- Helps individuals understand the daily problems of life
- It helps us solve the economic problems of the country for instance underdevelopment.
- Helps us sharpen human intellect or in other words have more knowledge. It enables us to gain more knowledge in our daily activities and also guides us through our careers.
- It's a foundation course for further studies.
- It suggests you what to do when prices and inflation rate are increasing. These are when the prices vary regarding currency.
- It shows, how GDP is calculated, what is real GFP and Nominal GDP what is national GDP.
- It helps in finding out the association between price and demand and elasticity of demand-supply which means what will be the impact of the change in one price impact on demand.
- Helps us Know what is necessarily good which inelastic in demand that means price doesn't affect these type of commodities.
- Enables us to know how money flows in the market and what are liquids.
- Allows us to clearly understand that what is the scarcity of goods and how it impacts on society.
- Economic tells us about the optimum allocation of resources; in real life is pure bullshit. It helps us understand the dynamics of an economy is again pure bullshit.
Relationship with other subjects
Managerial economics and traditional economics relationship: managerial economics can be described as economics applied to decision making. It may be viewed as a particular branch of economics bridging the gulf between pure economics theory and managerial practice. Traditional economics has two main branches: Microeconomics and Macroeconomics.
Microeconomics is also known as price theory, is the primary source of concepts like the elasticity of demand, cost margins, the short and long runs, opportunity cost and various market forms. They are all of great significance to managerial economics.
Economics & Accounting: Managerial economics and accounting are closely linked with each other. Accounting is defined as the recording of financial operations of any organisation.
Managerial Economics and Operational research: operational research is closely interlinked to economics. It's the application of mathematical techniques to solving business problems; it provides all the data required for business problems and decisions and planning.
Economics and marketing: Economics helps marketing in two ways, first as an essential discipline providing tools and concepts of analysis and second, as integrating area, offering its judgement on the optimum sales volume under the given cost function to be optimised.
Economics and production management: production is defined as the creation of utility by transforming input into output, economics helps production to monitor and analyses the input market, To monitor market maturity and competitive maturity of products being produced. To take decisions on production targets.
Economics and personal management: economics helps personal management by analysis the economic and financial aspects of own problems both concerning the economic welfare of the firm and prevailing environment of the economy as a whole.
Economics and psychology: Economics is mainly concerned with consumption, production and resource used by individuals and groups. Economics is also worried about the procures by which households and firms make decisions about the use of scarce resources.
Economics and sociology: while sociologists are interested in all facts of organised human activity, economists are interested mainly in planned activities that are related to the production and consumption of goods and services.
Economics and political science: Economics interacts with almost all other academic disciplines. It is intimately intertwined with current events, and it has a significant effect on political events, both domestic international.
Economics and Decision Sciences: Economics is also part of a group of disciplines called decision sciences which includes some branches of statistics applied mathematics, operational research, and some areas of management and engineering. Economists are specifically interested in those decisions relating to production, consumption and resource use.
It is the part of economics that incorporates subjectivity within its analysis.
- It's the study or presentation of what ought to be rather than it is.
- It deals heavily in value judgment and theoretical scenarios when specific measures are adopted to remove unemployment economy will grow.
- Economics is an art when it utilities the facts of science for practical purposes. Therefore we can conclude that economics is a science.
SCOPE OF ECONOMICS
- Scope means the province or field of study. In discussing the range of Economics, we have to indicate whether it is a science or an art.
- Economics is a science: It is a systematic body of knowledge that outlines the link amid cause and effect. Science has another attribute, i.e. its phenomena should be amenable to measurements. The characteristics show that economics is a branch of knowledge where the various facts relevant to it have been systematically collected, classified analysed.
- Economics investigates the possibility of deducing generalization regarding the economic motives of human beings. The motives of individuals and organisations can be seen easily measurable in terms of money. Thus, economics is a science.
Essential Topics on Economics
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