Economics Definition Essay Example | Topics and Well Written Essays - 2000 words

Economics Definition - Essay ExampleThe essay Economics Definition discusses the definition of economics. whirl Smith defined Economics as the science of wealth. Economists define wealth as one that has comfort in use and Value in exchange. Economics is the study of how wants are satisfied and decisions make when faced with limited resources. Modern economics pretty much continues along Smiths subscriber line of analysis a nation and the people do well when the economy does well, and when the economy is in crisis or doesnt do well, the nation suffers and so do the people as they dont always get the goods and services they need. Microeconomics is defined at the level of respective(prenominal) choices. This branch of economics is mainly concerned with the decisions made by individual consumers, households, and firms and how these decisions interact with each other to form the prices of goods and services and the factors of production. This is basically a bottom up coming where lo oking at the smaller picture individuals relationship to the economy remains the focus area. Macroeconomics is defined at the level of aggregate results in which we study the national income, employment, interest rates, goods and services produced, total income earned, exchange rates, prices etcetera In this study, the national economy is studied and compared with global economics. Macroeconomics can be used to analyze how vanquish to influence policy decisions and goals like economic growth, price stability, full employment and the attainment of a sustainable balance of payments.