What Is Economics

What Is Economics

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What is economics, what is the definition of Economics, what is economics: economics is a branch of science that examines how best to meet people's unlimited needs with limited resources. In ancient Greece, the meaning of the word economy was the art of managing the assets of 1 House. The economy, which at that time consisted of 1 House in the area of relevance or influence, today concerns and affects every World.

Economics is a branch of social science that studies how to use limited resources. Throughout history, economics has been defined in many different forms. It is a fact that this definition also lose the meaning and significance over time, it is because the needs of individuals, modes of production and goods, thus changing and developing life forms this change also the meaning and function of the economy and development in a way parallel to the development of humanity is changing.

Although many views on economics have been mentioned before him, it is accepted that the tradition of classical economics began with Adam Smith in 1776. What made him so critical was that he was more interested in the functioning of economics than in literary analysis and moral research. A.In 1776, Smith Published 1 work in 5 volumes called the wealth of Nations, where he laid out 1 general and consistent model of economic order that could not have been done before him.

Looking at historical periods, various economic patterns can be seen. These layouts show quite different elements from each other on issues such as the source, quantity, and method of production. In economic patterns in history, the sources of production have been: land, labor, capital, and data. The pre-Industrial Revolution season, when soil was the means of production, was the period when people lived only by processing the soil and their production was the only agricultural crops, so the land was considered sacred and was the main cause of wars.

Humanity, which industrialised, mechanised and proceeded with Industrial Revolution, broke the monopoly of agricultural production. During this period, the economic actors were the machines that took the power of man's arm as an example, the factories where they were located, the workers who worked here, and the capitalists who owned the capital that managed them. 20. in the second half of the century, developments in the field of technology, especially computers, have also enabled data to be the economic tool today. Computers produced for this purpose and taking the human brain as an example have become symbols of this brand new era.

These developments, which started the Information Age, lead to changes in the definition of economics as well as all of humanity. Instead of the definition of an economy originating from the Industrial Era, which has limited resources and tools such as capital, labor, raw materials; today's economic system based on knowledge, the human brain, has unlimited resources and tools due to the fact that knowledge and the human mind are unlimited. Therefore, economics is also faced with the fact that it is social science that studies the management of unlimited resources.

WHAT ARE THE MAIN PROBLEMS THAT THE ECONOMY IS INTERESTED IN?

  • What, how much will be produced?
  • How will it be produced?
  • When will it be produced?
  • Where will it be produced?
  • For whom will it be produced?

BEGINNING OF THE ECONOMY

The beginning of economics as a social science 18. the century goes back to the years of the Industrial Revolution, which first began in England and spread to European countries and America, and especially to 1776, when Scottish philosophy professor Adam Smith published The Book wealth of Nations. This book is the first to systematically address the issues of Economics.

MICROECONOMICS AND MACROECONOMICS

Microeconomics, in any market the price of goods, how determined, how to obtain the maximum benefit of a consumer to spend money, a firm's production and cost structure and with this structure belongs in the product market would behave on such topics as how to stay. Alfred Marshall made contributions to the theory of microecomy with the book” Principles of Economics".

Macroeconomics, on the other hand, examines what macro variables are affected in the economy, such as total income, total consumption, total savings, total investment, and overall price level, and how to achieve the main goals in the economy, such as full employment, Fiat stability, and economic growth. John Maynard Keynes's book” The General Theory of Employment, Interest and money " forms the basis of macroeconomics.


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