Sunday, January 11, 2009

Definition of Economics

Economics is social science, which is concerned with the efficient use of scarce recourses to achieve the maximum satisfaction of economic wants. A basic understanding of economics is essential for well-informed people.

An understanding of basics of economic decision making and the operation of economic system enables businessman to increase profit. The businessman who understands when to use new technology, when to merge with another firm, and so on, will be in a position to earn more profit. Economics helps consumers and workers make better buying and employment decisions.

Since economics is a part of social science it includes sociology, psychology and political science. It is a study of how people make choices to satisfy their wants. In economics we examine situations in which individuals can choose how to do things, when to do things and with whom to do them. Ultimately the purpose of economics is to understand choices.

No comments:

Post a Comment