Hey guys! Hope all of you are good. I was waiting to write about economics for a long time. But due to some reason, I couldn’t find the time. I love this because I m reading about economics currently at my university. This blog is about economics. You will get to know about economics and its types. It will also elaborate the goals of economics. What are the aims that government keeps in mind during working on the economy of a country? Let’s start with the definition of economics.
***Economics***
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"Economics is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behavior and interactions of economic agents and how economies work."
source: wikipedia
It is a study of the of the economy a country. The study in which societies, business, individuals use resources to fulfill their requirements. Economics can be described as a relation between demands and supply. The people need to fulfill their requirements and it is possible only if the economy is managed.
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This study focuses on the things that are demanded and how to fulfill the desires. Providing all the fundamental needs of the people is the basics of economy.
**Types of economics**
1. Macroeconomics
"Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes national, regional, and global economies."
source: wikipedia
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Macroeconomics is analyzing the behavior of government or business as a whole. It is the study that comprises of a complete observation of a country economy. It focuses on the condition of a country economy at a higher level. All sectors are studied together about a relative reference point. It is a complete analysis of a country economy. Unemployment and poverty are the examples of macroeconomics. We get these examples after studying the economy of a country as a whole.
2. Micro Economics
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"Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms."
source: wikipedia
Microeconomics is defined as the study that analyzes the desire making of an individual. As macroeconomics is focusing on the overall behavior of government. While microeconomics elaborate the behavior of an individual. It is the analysis of a single person economy. Its central point is a single person. It defines the individual’s way of managing the economy. Like how a person manages his home budget or how a student divides his/her study time.
***Goals of Economy***
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Some goals are defined while setting the laws and regulations of a country’s economy. The government wants to achieve some goals. Different ideologies are applied to achieve the required goals of the economy. Some of the goals of the economy are:
Economic Efficiency
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Economic efficiency means that what producers make is consume without any loss. It means producing those products that are in demand. People consume all the goods and services. Nothing gets waste rather utilized completely. It means a balance between demand and supply. The economy can call efficient when producers sell all the products they made.
Equal distribution of resources
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When goods and services are distributed equally to all the people of a country, it is called equal distribution of resources. It happens only when resources are not limited only to rich people. If a country economy achieves this goal, everyone should have access to resources. It will make the condition of the country economy better. All the sectors enjoy equal rank if resources are distributed equally. This balance or equal distribution brings satisfaction among the people of a country.
Economic growth
The growth of economy means taking your country economy towards success. Increasing country’s economy brings work opportunities and eradicates unemployment. Economic growth determines the progress of a country. Government works to achieve this goal. Demand and supply must get increase each day for the economic growth.
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Economic Security
The basic goal of an economy is its security. Keeping people safe from economy risk is the base of this goal. Producers and consumers both want the security of economy.
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They want to be safe from economy risks. The foremost goal of an economy is making it secured from unauthorized persons. Neglecting all mishaps is the basic urge of economic. Without this, the economy of a country can never progress.
Price Stability
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This goal comprises of three major aspects. These are:
• Sustained growth without large swing in output/consumption
• Stable level of employment
• Stable level of prices
All these aspects define that a country economy is stable. The economy is stable if there is a stable level in the price of goods and services and employment. The prices of goods should not be too high that a common man cannot access. A suitable level is marked that brings stability in the prices of goods. This stability proves to be beneficial not only for the consumers but also for the producers.
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Economic Freedom
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Economic freedom is the right of each inhabitant of a country. It defines what a person chose for his career, where he wants to live or what he wants to do for making him successful. These are the basic rights each person should have. All these freedoms are necessary without any discrimination.
Economic freedom gives each individual an opportunity to change its life. Meanwhile, there are some cases where economic freedom is prohibited to impose laws.
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That’s all I know about the economics. I hope all of you get something informative from this blog. Thank you so much for reading. Stay tuned for a further post. See u soon.
