Two important methods of simplification have been developed by economists. “One of the most important skills of the economist, therefore, is that of simplification of the model. It ensures efficiency and sustainability in the use of resources. Since there are many possible ways to acquire and use resources including human labor, it is economics that ensures that the best way is chosen. You can also check out our blog on Capital in Economics. The two building blocks of economics are labor and trade. It focuses on these actions performed by humans. It also looks after the allocation of resources among individuals by a nation.Įconomics works on the assumption that humans acquire a rational behavior to achieve the optimal level of utility. When we talk about Economics as a subject, it is a social science that is concerned with the production, distribution, and consumption of goods and services. This was how macroeconomics materialized as a fresh branch of Economics, a branch that assessed the behavior and structure of the whole economy, running parallel to the conventional microeconomic approach.īefore we dive into the specifics of macro and microeconomics let’s get an idea of what Economics is first.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |