Explain the concept of economic with an example
Answers
What is Economics?
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 on allocating resources to satisfy their wants and needs, and tries to determine how these groups should organize and coordinate efforts to achieve maximum output.
Economic analysis often progresses through deductive processes, including mathematical logic, where the implications of specific human activities are considered in a "means-ends" framework.
Economics can generally be broken down into macroeconomics, which concentrates on the behavior of the aggregate economy, and microeconomics, which focuses on individual consumers.
Economics:Economics is the social science that studies the production, distribution, and consumption of goods and services.
◆Economic analysis can be applied throughout society, in business, finance, health care, and government.
◆An example of economics is the study of the stock market:
●There are hundreds of buyers and sellers, with equal access to regularly updated information.
●We can assume most stock market traders are rational people who seek to maximise their profits.
●There are few barriers to entry and exit; anybody can buy shares if they have enough money.