Economics - An Overview
ECONOMICS
In the meaning of economics, the term ‘Economics’ owes its origin to the Greek word ‘Oikonomia’, which can be divided into two parts: oikos means home and nomos means management.
Thus, in earlier times, economics was referred to as home management where the head of a family managed the needs of family members from his limited income.
Till the 19th century, Economics was known as ‘Political Economy.’ The book named ‘An Inquiry into the Nature and Causes of the Wealth of Nations’ (1776) usually abbreviated as ‘The Wealth of Nations’, by Adam Smith is considered as the first modern work of Economics.
Political economy is another name for economics. “Polis” in Greek means a state. The early writers used the term “Political Economy” for the management of the state. A person who runs a family is expected to make the best use of the income of the household. Similarly, the state is expected to get the maximum benefit for the society. Hence the term “Political Economy”.
Economic is a social science which studies about human wants and their satisfaction. Human wants are unlimited. So scarcity is the fundamental fact of life. As all wants are not of equal importance, this leads to choice. It is a social science which deals with human wants and their satisfaction. It is mainly concerned with the way in which a society chooses to employ its scarce resource which has alternative uses, for the production of goods for present and future consumption.
Economics is the science that deals with production, exchange and consumption of various commodities in economic systems. It shows how scarce resources can be used to increase wealth and human welfare. The central focus of economics is on the scarcity of resources and choices among their alternative uses.
Economic analysis is the study of economic systems. It may also be a study of a production process or an industry. The analysis aims to determine how effectively the economy or something within it is operating. For example, an economic analysis of a company focuses mainly on how much profit it is making. Economists say that economic analysis is a systematic approach to find out what the optimum use of scarce resources is.
An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. Economic systems regulate the factors of production, including land, capital and labor. There are two major economic systems: capitalism and socialism, but most countries use some combination of the two known as a mixed economy. In pure or laissez-faire capitalism, there is private ownership, and markets and prices coordinate and direct economic activity.
ECONOMICS
In the meaning of economics, the term ‘Economics’ owes its origin to the Greek word ‘Oikonomia’, which can be divided into two parts: oikos means home and nomos means management.
Thus, in earlier times, economics was referred to as home management where the head of a family managed the needs of family members from his limited income.
Till the 19th century, Economics was known as ‘Political Economy.’ The book named ‘An Inquiry into the Nature and Causes of the Wealth of Nations’ (1776) usually abbreviated as ‘The Wealth of Nations’, by Adam Smith is considered as the first modern work of Economics.
Political economy is another name for economics. “Polis” in Greek means a state. The early writers used the term “Political Economy” for the management of the state. A person who runs a family is expected to make the best use of the income of the household. Similarly, the state is expected to get the maximum benefit for the society. Hence the term “Political Economy”.
Economic is a social science which studies about human wants and their satisfaction. Human wants are unlimited. So scarcity is the fundamental fact of life. As all wants are not of equal importance, this leads to choice. It is a social science which deals with human wants and their satisfaction. It is mainly concerned with the way in which a society chooses to employ its scarce resource which has alternative uses, for the production of goods for present and future consumption.
Economics is the science that deals with production, exchange and consumption of various commodities in economic systems. It shows how scarce resources can be used to increase wealth and human welfare. The central focus of economics is on the scarcity of resources and choices among their alternative uses.
Economic analysis is the study of economic systems. It may also be a study of a production process or an industry. The analysis aims to determine how effectively the economy or something within it is operating. For example, an economic analysis of a company focuses mainly on how much profit it is making. Economists say that economic analysis is a systematic approach to find out what the optimum use of scarce resources is.
An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. Economic systems regulate the factors of production, including land, capital and labor. There are two major economic systems: capitalism and socialism, but most countries use some combination of the two known as a mixed economy. In pure or laissez-faire capitalism, there is private ownership, and markets and prices coordinate and direct economic activity.
