Economics can be defined as a discipline that studies the behaviour patterns of human beings.The main aim of economics is to analyse how individuals, households, organisation and nations use their scarce resources to achieve maximum profit.
Economics is broadly classified into two parts, namely Microeconomics and Macroeconomics.
Microeconomics is a branch of economics that studies the behaviour of individual consumers and organisations in the market.On the other hand, Macroeconomics examines the economy as a whole and deals with issues related to national income, employment pattern, inflation, recession,and economic growth.
Meaning of Economics: Evolution of subject economics.In simple terms, economics can be defined as the study of how individuals, households, organisations, and nations make optimum utilisation of scare resources to satisfy their wants and needs.
The word Economics has originated from a Greek word oikonomikos, which can be divided into two parts:oikos means home and nomo means management.
Let us now discuss how these groups use economics for their betterment:
Economics and a household: Every household needs money to meet their daily expenses.In this manner they sell their labour to firms, producers or government agencies and in return they get limited amount of money.
Economics and society: Economics also helps a society to ensure optimal allocation of scare and limited resources.If a large amount of inputs is used to produce a small amount of output,then there will be wastage of resources.It will create imbalance for economy and the society as a whole.ultimately ,it makes economy weak which is unable to deal with social evils, like poverty and unemployment.
Economics and nation: Human wants are unlimited but resources which are available to satisfy these wants are unlimited or scarce in nature.Scarcity is the cause for all economics problems and it also give rise to other related problems such as traffic jams,long queues in Bank, overcrowding in public transport,etc.
Economics and world:As we know Human wants are unlimited but resources to satisfy these wants are limited and scarce and the problem of scarcity can also be seen at the global level.At the global level, international economics provide a way to study economic transaction among different countries.These economics transactions are also called economic activities and it includes transfer of goods, capital, resources, technology and services from one country to another country.