January 13, 2013
Economics and the Effects on Our Society
A crucial topic of discussion that we hear among our fellow co-workers, family, friends, or colleagues is how the economy is affecting our daily activities of living. When stating this, there is much debate and question as to how our money is valued and the effects it poses on various aspects of our purchases and savings. According to the Merriam-Webster Dictionary, economics can be defined as, “A social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services” (Merriam-Dictionary, Online, 2013). Economics is a way in which hierarchical groups of corporations throughout our society place a value on how our dollar is created, spent, and used. As we learn from Heynes, the economic way of thinking can be considered as “All the social phenomena from the actions and interactions of individuals who are choosing in response to expected additional benefits and costs to them.” (Heynes, ppt, slide 10). Through this paper we will learn about the various economic branches that effect our society and the significance each plays within our lives today.
To begin our understanding of economics we will first analyze what the description and the differences among the various branches of economics.
Microeconomic: This is the study in which individuals determine how trends among behaviors and actions affect market value and the prices of particular goods and services. (Investopedia)
Macroeconomics: This is the part of our economy that looks at society as a whole, nationwide to determine how resources, production, and consumption can lead to future growth. The market of macroeconomics is able then to analyze what will allow the economy to function efficiently and properly. (Investopedia)