Economics help Australia
Economics is that branch social science that analyzes the production, distribution and consumption of various goods and services. Resources are present in limited quantities and therefore should be used judiciously. Every society or economy wants to figure out the best possible way in which resources should be distributed so as to get maximum efficiency and maximum benefits. This best possible way can be figured out with the help of economics. Certain things that are studied under the realm of this subject are: determination of prices and quantities of items, effects of taxes and regulation on economic value, effects of monetary and fiscal policies on the economy, determination of interest rates, the way firms compete and maximize profits etc. Economics is divided into two main branches:
- Microeconomics- The Greek prefix ‘micro’ means ‘small’. Therefore, as the name suggest, microeconomics is the study of small economic entities. It studies the behavior of how the individual modern household and firms make decisions to allocate limited resources. It studies the effects of the various decisions taken by households and firms on the supply and demand of goods. It looks at how individual businesses decide how much of something to produce and how much to charge for it. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers.
- Macroeconomics- The Greek prefix ‘macro’ means ‘great’. Therefore, as the name suggest, microeconomics is the study of dealing with the performance, structure, behavior and decision-making of the entire economy (national, regional, or global economy). Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, inflation, rate of growth, stagnation, gross domestic product and price levels. This branch of economics is primarily concerned with variables which follow systematic and predictable paths of behaviour. These variables can be studied independently of the factors which influence them. To be more accurate, it is a study of national economies and the determination of national income.
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