Economics are many different things. It is the division of labour which means that each worker is specialised and due to the specialisation more productive. Economics is also the supply and demand. A part of it is the work market were the unemployed can get jobs and the employed can specialise themselves or attend further training. It is the value of money and the way it can change in form of inflation or deflation. Economics shows that there are also other means of exchange. Economics is also the human development and the development of what we prefer to buy. It describes how the different types of markets work. Sustainable shops and sustainable production are also a part of economics, which are getting more and more important because of the current situation of climate change. Another part are the needs of human, there is the Maslow pyramid which actually is not true because the needs of everyone are unique. All in all you can say that economics is very divers.
What is economics the short version
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Economics has two main streams that are called Microeconomics and Macroeconomics. Micro deals with customer behavior, incentives, pricing, etc. Macro deals with broad economies and larger things such as interest rates and the Gross Domestic Product (GDP).
It describes the total value of goods produced and services provided in a country over a year.
The Supply and demand principle is a well-known principle of economic theory. Demand is the amount of a good that will be bought at given prices over a period of time. Supply is the amount of a good that sellers are prepared to sell at a given price. The more people want something, the higher the demand is for it and the more they will value it. As an example: if something is in low supply but in high demand the value is increased, as it will decrease if there is a low demand for that item.
The business cycle is the natural rise and fall of economic growth that occurs over time. The cycle is a useful tool for analyzing the economy. It can also help you make better financial decisions.
Especially during the current situation, you may have heard of the terms inflation and deflation. Inflation is the increase in the price of goods and services. When the overall price level decreases so that inflation rate becomes negative, it is called deflation.
Whenever a bank loans money to someone, it will expect to receive interest in return. This way it can be compensated for its opportunity costs and the risk of not getting the money back. This process is called interest rates.
People can’t get everything they want, so they have to pick certain things over others. Opportunity costs describe the value of the next best alternatives that are given up during this process in order to get something else.
The growth of an economy is commonly measured in terms of Gross Domestic Product (GDP) growth rate. It is necessary to satisfy people’s desire for an ever-increasing standard of living, to redistribute wealth, and to advance new technologies.
Money is an obvious and integral part of today’s society. It is defined as something that serves as a medium of exchange, a unit of accounting, and a store of value.
Marginal utility is the amount of additional utility provided by an additional unit of an economic good or service.