Economics

Economics, when we say economics what is the first thing that comes to your mind? Economics
has a huge contribution to our world, it helps our society, and the world to take a big step to
become a progressive and stable economy. Economics also helps us to emphasize how the
society of economists works and how can we develop it as a member of that society. The study
of economics is about trade, the marketplace, political economy, etc. The original definition of
economics was the study of resource allocation at the home level. Derived from a greek word:
oikos means house and nomos mean custom or law.

What are Economics and its history? What is the development of it and how does this affect our
society? Economics is a sector that includes the creation, transfer, and consumption of products
and services. A given economy is a set of processes that involve its culture, values, education,
technological evolution, history, social organization, political structure, legal systems, and
natural resources as main factors. It is generally defined as a social domain that emphasizes the
practices, discourses, and material expressions associated with the production, use, and
management of scarce resources. These elements determine the parameters and conditions under
which an economy operates in addition to providing background and content. In other words, the
economic realm is a social domain made up of connected human behaviors and exchanges that
cannot exist independently. A market is a collection of buyers and sellers, and an economy is
made up of many markets. Economic markets are systems for allocating a country's limited
resources. An economic market is a microeconomic mechanism that describes how the economy
functions, whereas a country's economy is a macroeconomic topic. An economy is made up of
customers who purchase goods and services, businesses that employ consumers and produce
commodities, and various levels of government that purchase goods, hire labor and collect taxes.
They interact with each other in a way that simplifies the economy.

The development of economics one of the oldest theories of development economics that
produced methods to support a country's success is believed to have been mercantilism. Between
the sixteenth and eighteenth centuries, it was the most widely used economic theory in Europe.
The approach advocated decreasing exposure to competing national powers in order to increase
state power. By forbidding colonies from conducting business with other countries, mercantilism
fostered government regulation, much like political absolutism and absolute monarchs.
Mercantilism forbade the export of gold and silver and monopolized markets with important
ports. It assumed that the supply of gold and silver would increase as it became more prosperous.
Generally speaking, it prohibited the use of foreign ships for trade, aimed for a trade surplus
(exports larger than imports), and maximized the use of domestic resources.
Economics has a big impact on our society it influences how well and how long we live and can
be greatly influenced by social and economic factors, including money, education, work,
neighborhood safety, and social support. These elements have an impact on our capacity to make
healthy decisions, pay for housing and healthcare, control stress, and other things. In economics,
there are several subfields, each of which supports a distinct viewpoint. In economic research,
there are important dichotomies and crossings that allow for the development of subfields within
the subject these are Microeconomics and Macroeconomics the main difference between these
two economics is their study's focus. Microeconomics deals with small-scale market interactions
that transpire between individuals consisting of business firms and households. Microeconomics
examines the resource allocation choices made by businesses and individual customers.
Economists can examine how a single individual, a household, or a firm responds to price
changes and why they want what they do at specific price levels. Microeconomics examines how
and why prices of things vary, how people manage their money, and how they trade, coordinate,
and collaborate. Microeconomics examines how firms are set up as well as how people address
uncertainty and risk in their decision-making. It does this by examining the dynamics of supply
and demand, the costs of producing products and services, and the division and allocation of
labor. Macroeconomics, on the other hand, focuses on examining the factors that affect national
income. Macroeconomic influences include, for instance, inflation, unemployment rates, and
economic outputs. Governments, companies, and consumers all closely watch these economic
success metrics. The area of economics known as macroeconomics focuses on the operation and
behavior of an economy as a whole. Recurring economic cycles as well as general economic
growth and development are its main priorities. Foreign trade, governmental fiscal and monetary
policy, unemployment rates, the rate of inflation, interest rates, the increase of total production
output, and economic cycles that cause expansions, booms, recessions, and depressions are the
main topics of discussion.
Macroeconomic models are used by economists to develop economic policies and strategies by
using aggregate indicators.

To further understand economics we shall use the example of a human person to better
comprehend the phrases economic growth and economic development. Human growth simply
refers to a person's physical, or physical-based, rise in height and weight. But, if you discuss
human growth, it will consider both concrete and figurative elements, such as maturity level,
attitudes, habits, behavior, sentiments, intelligence, and so forth. Similar to how an economy's
growth can be measured by comparing its size to the previous year, economic development
includes both physical and non-physical elements that can only be felt, such as an improvement
in the way of life of the populace, a rise in personal income, advancements in technology, and so
on.
In closing the economy is important to the society, Economic growth between the pre-colonial
period and the modern period has drastically improved. Thus people in the modern era can easily
obtain and freely use the benefit of economics, resulting in a better and more stable economy.
This paper will serve as a brief idea to students on how the economy works and what is the
important of the economy