Economics is the science that deals with the production, distribution and consumption of commodities, is the study of how people behave when faced with limited choices or scarcity to satisfy needed resources at any degree. Human behavior determines the quantity a good is produced and how it is distributed and consumed. We can say that it anticipates how people would react to certain event changes. Economics analyzes these irrational human thinking and assumes a number of possible scenarios that would result from it. Even for example every single person's income increased, their spending power is increased and thus would buy more goods. On the the other side of the story, supplies would be depleted and to prevent suppliers from running out of goods to sell they would have to increase the price. From this we can see that the continuous rise in prices of goods or income move in lockstep.

The word economics means one who manages a household in Greek. As the name originally implies, managing a household requires determining proper resource allocation to achieve optimal living standards among its members with whatever resource is available. It is divided into two branches, Macroeconomics and Microeconomics.

Home | Next

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use