You are on page 1of 5

What is economics?

Economics is a social science and it is important in our social life, political life, economic life and daily life. it is based on the pillar of a country that how a country is progressing in the economic field, how its people is growing in the economic field. Everybody is involved in economics as a consumer, investor, etc. In any capacity all inhabitants are playing a role as economic agents, making decisions relevant to savings, pensions, buying a home etc. The economic system provides everyone with price schedules relevant to the markets in which the people are participating.

What is micro economics?

The subject matter of economics has been divided into two parts microeconomics and macroeconomics. In !icroeconomics we study the economic behavour of an individual, firm or industry in the national economy.It is thus a study of a particular unit rather than all the units combined.We mainly study the following in microeconomics "# $roduct pricing %# &onsumer behavior '# (actor pricing )# Economic conditions of a section of the people

*# +tudy of a firm and ,# -ocation of a industry

What is Macroeconomics?
Economists tend to focus on how people make decisions .ow people interact with one another .ow many people work and how much do they work What people buy .ow they invest .ow much money/resources do they save

Importance of economics
Economics is also important for an individual. (or e0ample, every decision we take involves an opportunity cost 1 which is more valuable working overtime or having more leisure time. &onflict between East and West is purely economic. The present world problems are caused by the emergence of Europe. 2apan and &hina as world economic powers. The major problem of the Third World, represented by 3sia, 3frica and -atin 3merica, is underdevelopment. The world4s main concern today remains economic development. Economics deals with the laws and principles which govern the functioning of an economy

and its various parts. 3n economy e0ists because of two basic facts. (irstly, human wants for goods and services are unlimited and secondly, productive resources with which to produce goods and services are scarce. Therefore, an economy has to decide how to use its scarce resources to obtain the ma0imum possible satisfaction of the members of the society

Economics is a +ubject of everybody

Economists can advise governments how to manage the economy and avoid inflation and unemployment. 5oth hyper inflation and mass unemployment can be devastating for society. Economists argue that both can be avoid through careful economic policies. 6enerally it is considered that free markets offer a better solution than a planned economy 7&ommunist# .owever, free markets invariable lead to problems such as the over production of negative e0ternalities 7pollution# and underproduction of goods with positive e0ternalities 7education, health care, public transport#. 3n economist can suggest policies to overcome these market failures 3nother clue to the importance of economic studies is the fact that the character of people and their way of thinking are the outcome of economic development and circumstances. .ence the remarkable difference between agricultural and industrial societies. Thus, while we find the farmer rather contented and resigned, sowing and awaiting

such fatal judgments as aspects of the weather and agricultural catastrophes. .is counterpart in industry is more ambitious and combative as he is in control of the machine and of production. It is a fact that the basic difference between advanced and underdeveloped societies stems from their differential decrees of economic growth and development. ". Economy has become so important in modern times that the issue of human development and progress has become the issue of economic development or underdevelopment. 8et, if the purpose of any society is to progress and improve morally, then we have to understand that it is necessary for progress to be complete with both its material and spiritual aspects, i.e., its economic and religious facets. &oncern with one aspect at the e0pense of the other will lead to dise9uilibria and disorder in the lives of individuals and of society.

In the end now, it has long been agreed that economic development is not simply an elegant action, but one that has tremendous effects on society. .ence action has focused on the necessity of the participation of the population at all levels, not only In the discussion of developing projects but also in the evaluation of the results. There

is no doubt that the indifference e0hibited by the Islamic world in general, and the 3rab world in particular, are a conse9uence of the citi:en4s lack of awareness and confidence in the process of their participation in the establishment and reali:ation of economic objectives. It goes without saying that whenever an individual or society achieves success and progress, it is because of a strong belief in the objectives and a firm commitment to ensure their reali:ation. The outcome of this is benefit and profit for the individual and society.