Define economics? List any two functions of an economy.
Answers
Answer:
The three most important functions of economics are as follows: Just as feeding, digestion and growth are the vital processes of living beings; similarly production, consumption and growth are the essentials of economies.
Answer:
Economics is a social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources. Economics focuses on the actions of human beings, based on assumptions that humans act with rational behavior, seeking the most optimal level of benefit or utility.
Two functions of an economy are :-
1.Protection of private property and maintaining law and order / national defence.
2.Raising taxes.
3.Providing public services not provided in a free market (e.g. health care, education, street lighting)
4.Limit market failure through the regulation of markets, e.g. regulations on environment/labour markets/monopoly.
Explanation: