Economics Definition Essay Example | Topics and Well Written Essays - 2000 words

political thrift Definition - Essay ExampleThe essay Economics Definition discusses the definition of economics. Adam Smith defined Economics as the science of wealth. Economists define wealth as one that has Value in use and Value in exchange. Economics is the study of how wants be satisfied and decisions made when faced with limited resources. Modern economics pretty much continues along Smiths line of analysis a realm and the people do well when the economy does well, and when the economy is in crisis or doesnt do well, the nation suffers and so do the people as they dont always countenance the goods and services they need. Microeconomics is defined at the level of individual choices. This branch of economics is mainly concerned with the decisions made by individual consumers, households, and firms and how these decisions interact with each another(prenominal) to form the prices of goods and services and the factors of production. This is basically a bottom up approach where looking at the smaller picture individuals relationship to the economy remains the rivet area. Macroeconomics is defined at the level of aggregate results in which we study the national income, employment, interest rates, goods and services produced, total income earned, exchange rates, prices etc. In this study, the national economy is studied and compared with global economics. Macroeconomics can be used to analyze how best to influence policy decisions and goals like economic growth, price stability, full employment and the achievement of a sustainable balance of payments.