Essay Example on Economic is a social science about the production Manufacturing









Economic is a social science about the production manufacturing distribution and consumption of products and services It is the study of the choice of allocation resources to be able to gain satisfactorily want and need of the individuals business firms nations and their concerning governments how to organize these groups and coordinate to gain maximum output It is concerning with how to manage the incomes and expenditures as well as economic biology just like the contentment of the material needs of the people Every economic system may encounter three core areas of concern the first area of concern is which product will be produce in which amount The second one is what kind of technology which will be used to produce The last area of concern is who is intended to use these products According to these three core areas of concern it is necessary to know consumption and production Consumption is the final purchase of products services and expenditures by individual Consumption can also be stated as destruction of utility Production is the fusion of the resources like human land me chance and immaterial statements such as planning 

One of the fundamental economic problems is Scarcity It can be described as the unlimited wants and need of the human beings in the universe who want to get highest satisfaction over limited scarce resources If one want is satisfied another want crops up For example one of the traditional herbal remedies is becoming endangered because of the reports that plants cure the patients with AIDS the demand of this plant is highest and this pant is over harvested When economics is studied making decision between cost and benefit Marginal benefit is the most pleasant satisfaction that can be gained from consuming the supplementary unit of a product and service Marginal cost is the alternation of the opportunity cost that happens when the produced amount is enhanced by one unit or more It can be defined as the up or down of the produced cost relying on the production level Marginal benefit is the most pleasant satisfaction that can be gained from consuming the supplementary unit of a product and services When marginal cost is greater than marginal benefit economics can increase net benefit by decreasing the activity Otherwise marginal benefit is greater than marginal cost most of the resources can not be made more Political economics can not be left to know about economics in a whole Political economy is the study of trade and manufacturing their concerning laws rules and regulations custom government and the distribution of income and property of the nation It also studies in which way a country or a household is controlled or managed by recognizing the political and economic sectors Economic theory is divided into two parts microeconomics and macroeconomics 

MacroEconomics is a branch of economics that concern with the study of structure decision making behavior and performance of an economy as a whole It includes regional national and global economies It observe aggregated indicators like price index national income aggregate demand aggregate supply general level of prices savings and investment GDP total consumption and unemployed rate as well as interrelated factor of the whole economy The four major objective of macro economics are full employment price stability sustainable growth and keep the balance of payments in equilibrium Positive macroeconomic factors generally suggest events that lead to prosperity within a nation or multiple nations For example if the price of rice decrease consumer can surely spend on other product and services more Negative macroeconomic factors that deal with the events that can affect or decrease a national or international economy It there is a civil war or a riot or instability of the political system the economic system of the concerning country may put in jeopardy 

Micro Economic is a branch of economics that concern with the study of the characteristics and behaviors of a person or a firm while making decision to allocate the scarce resources and the interaction among each person or each firm Microeconomics describes how individuals try to get more efficient or more productive decisions and how individuals create best coordinate and cooperate with one another The main objective is to evaluate how the market use to rely on the reasonable prices among product Microeconomics helps in the formulation of economic policies calculated to promote efficiency in production and the welfare of the masses There are three type of Economics system In planning economics Government is the decision maker and making control for all functions of the whole economy Government decide what goods must produce and how much of each good produced will produce and how allocate to people Some of the advantages are government don t allow monopolizing wasteful competition is avoided and can guarantee for economic security no industrial unrest because the government define and controls wages Some of the disadvantages are less choice for consumer lack of incentive for worker less innovation and many official too much paperwork and too many procedure In Market economic

The government include little role if any role in the economy Production distribution and investment are depend on supply and demand The main goal is to get the maximum profit But pure market economics can not be existed at any country Some of the advantages are less shortage more choice for various goods and service base on win win situation tend to competitiveness Some of disadvantages are less government intervention so price can be high monopoly is allowed so the few rich get richer and the many poor get poorer A mixed economy is described as an economic system including of a mixture of either markets and economic planning public ownership and private ownership or markets and economic interventionism General advantage of mixed economics is both government and private sector can run continuously so the economics will develop more quickly but government can control at major economics sectors this can be defined as disadvantages

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