Through ‘ The Economics ‘

In general sense, business is when an entity involved itself in the trade of goods or services. Now a question arises that what is the need of economics inside business. And the answer is Economics is that matter which concerned with relationships among entities within societies. And the matter of fact is that everyone is a part of economy and everyone uses the rules of economy because it describes the factors which determine the production, distribution and consumption of goods and services.

And when we perceive economics from individualism perspective then it is the science of making decisions in the presence of scarce resources. And decisions are important because scarcity implies that by making one choice, you give up another. E.g. A mobile firm that spends more resources on advertising has fewer resources to invest in research and development. Therefore, economics is the study of how to direct scarce resources in the way that most efficiently achieves a goal.

There are two schools of economics, namely, microeconomics and macroeconomics. Microeconomics studies the behavior of individual and small impacting organizations in making decisions on the allocation of limited resources and other side macroeconomics covers the whole rather than an individual.

Economics deals with very complex issues and much confusion can be avoided by using the language economists, formulas and definitions have designed to break down complex issues into manageable components. And precise terminology helps practitioners of economics communicate more efficiently.

Understanding the definition used in economics is like knowing the difference between a whole note and a quarter note in music. Without such an understanding, it would be very difficult for anyone other than an extremely gifted musician to learn to play an instrument or to communicate to other musician how to play a new song. Given an understanding of the language of music, anyone who is willing to take the time to practice can make beautiful music. The same is true of economics: Anyone who is willing to learn the language of economics and take time to practice making decisions can learn to be an effective person for own individuality or for the whole society.

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