A Brief About Economics
Economics is righty defined as the study of social science which deals with the production, distribution, and consumption of the goods and services in an economy at large.
Economics is a subject that analyzes the choices of individuals, governments, and nations and helps in allocating scarce resources.
This article will introduce the students to the subject of Economics. Understanding the term ‘economics’, knowing what is microeconomics and macroeconomics, what is the role of an economist, and what are the economic indicators will be primarily studied in this article.
Now, without further ado let us begin with a detailed explanation of economics.
FAQs on Economics
1. What are economic indicators in development economics?
A country’s or government agency’s economic performance, productivity, efficiency, and growth rate in a particular area are detailed in the form of reports known as economic indicators. For the management team and executives to understand better and take important decisions for the company, private companies or government agencies periodically publish these reports. Fixed income and stocks are considered to be affected by these changes. Economic indicators help investors to make investing decisions by understanding the economic position of the company in the market. GDP or gross domestic product, retail sales, industrial production, employment data, and CPI or consumer price index are essential economic indicators. There are many more indicators with these that are internationally acclaimed.
2. Who is the father of modern economics?
Adam Smith is undoubtedly considered as the father of economics in any scenario as he was the first one whose book caused a lot of chaos amongst economists. The Wealth of Nations is his 18th-century classic work, due to which he received all the fame. The main idea which Smith presented back then, which is the truth of the modern world, is that self-interest is the only thing that drives the entire world. Philanthropy and charity arise entirely out of self-interest. This is just one theory, but there were plenty of quotes that were so simple to read but had an interesting deep point. Although Smith was an economist, his reputation was of a direct person with a witty sense of humor.
3. What are the four main concepts of Economics?
The four main concepts of Economics are - scarcity, supply and demand, costs and benefits, and incentives.
4. What are the five principles of Economics?
The five principles of Economics are - Opportunity cost, marginal principle, the law of diminishing returns, the principle of voluntary returns, and the real/nominal principle.
5. Why do we study Economics?
Economics is studied in order to make sound judgments about production and consumption. With the study of economics, man can strategize their decisions and anticipate optimum outcomes.
4. What are the basic things learned in economics?
We learn many things in economics, some of the basic things learned in Economics are - supply and demand, perfect and imperfect competition, taxation, international trade, price controls, monetary policy, exchange rates, interest rates, unemployment, and inflation.
5. Is Maths compulsory to study Economics?
Maths is an important requirement of economics, but ‘not always’. In order to do basic calculations like average, addition, subtraction, division, and multiplication maths is required. Apart from this, major applications of Maths are not required.