Economics is the study and understanding of the economy such

as the governmental system, money marketing, trades such as

production and financial market. The traditional economic
system is based on customs, beliefs, and ways that people have
been doing things for century’s. when the government has control
over the aspect over the production and makes all the decisions
and ways to control the economy. With the market of the
economic system an individual owns the production and they will
make economic decisions through free communications and this
will keep the government from interfering in their production.
When you are dealing with economics you have to devise a
theory, collect the data for the information you will be using,
analyze the data so they can be verified or refuted to support the
theory.…show more content…
There is no laboratory in economic the theory is based on past
history experiences. There are many assumptions in economics it
just has to be made easier to understand in this complex world we
live in and there are many assumptions that are used when
answering questions in studying the effects of short-run or long-
run. Diagrams and equations show many details and allows us to
see thing that are important. The distribution of income comes
from a pay check from work, the amount of healthcare a person
has, education, food,…show more content…
The way that you can capitalism when the individual owns the
production and they decide how to use these productions within
the limits of the law; then the owner will market the economic
system and free of the enterprise system. How to make the right
profit is when you pay the cost of your production – wages, rent,
interest, and your taxes have been paid and you have money left