What is Economics? Explain the main features of Adam Smith’s definition of Economics. Economics is the social science that studies the production, distribution and consumption of goods and services. The term economics comes from the Greek for “oikos” means house and “nomos” means custom or law, hence the term economics means “rules or laws o household”. A definition that captures much of modern economics is that of Lionel Robbins in 1932 essay which states as “the science which studies human behaviour as a relationship between ends and scare means which havealternative uses.” “Economics is the study of people in the ordinary business of life”. In short economics includes the study of labour, land and investment of money, income and production and taxes and government expenditures. Economist seeks to measure well-being to learn how well-being may increase overtime and to evaluate the well-being of the rich and the poor. Managerial economics is a study of application of managerial skills in economics,more over it help to find problems or obstacles in the business and provide solution for those problems.problems may be relating to costs,prices,forecasting the future market,human resource management,profits etc. Definitions of Macroeconomics
"Macroeconomics is that part of economics which studies the overall averages and aggregates of the system." (Kenneth Boulding) "Macroeconomics deals with the functioning of the economy as a whole." (Carl Shapiro)
What's the difference between macroeconomics and microeconomics?
Microeconomics is generally the study of individuals and business decisions, macroeconomics looks at higher up country and government decisions. Macroeconomics and microeconomics, and their wide array of underlying concepts, have been the subject of a great deal of writings. The field of study is vast; here is a brief summary of what each covers:
Microeconomics is the study of decisions that people and businesses make regarding the allocation...
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