Economics Homework Help
Economics Homework Help :
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Types of Economics
There are two types of economics:-
Microeconomics
It is the most crucial branch of economics that deals with the study of individual behavior and firms in decision-making. Besides, it is based on scarce resources and interaction allocation among individuals and firms.
Uses of Microeconomics- Elasticity and Revenue
- Rationing and Allocation
- Constraints on a Firm
- Maximizing Profits
- Government Efficiency
- Risk and Exclusion
- Resource Markets
- Monopolies
- Transport Costs
Macroeconomics
This branch of economics deals with the performance, structure, behavior, and decision-making of an economy. Macroeconomics deals with all kinds of economics i.e., the regional, national, and international economies.
Uses of Macroeconomics- Economic Downturns
- Growth and Development
- Economic Measurements
- Financial Markets
- Creation of Money
- Theories of Business Cycles
- The Labor Market
- Fiscal Policy
- Monetary Policy
Why students Study Economics
Economics helps students a lot in their everyday life. With the proper knowledge of economic the students can able to answer the few queries:-
- Should we invest in the financial resources to make money?
- Is it worth going to college or use that money to start a business?
- Which career is better for the future, among lots of options.
Economics is widely used in the world. It is almost in every sector of life, i.e., banking, manufacturing firms, consulting, real estate, non-profit organizations, and lots more. Therefore economics is not only crucial for the commerce students but also useful for almost every student. Having a strong command over economics also leads to being a great economist. As mentioned above, economics is not just valuable for professional life but also plays a significant role in personal life.
Types of Economic Systems
Economics is limitless around the world. Therefore it has various types that deal with a variety of problems, but all the economics are unique in their ways. We have classified these economics into four major economic systems.
Traditional economic systems
As the name suggests, these types of economics are the most ancient and traditional types of the economics of the world. It is a widely used economic system in the world. A massive portion of the world economy operated under a traditional economic system. This economic system is based on the long-established pattern. Such as how people exchange products and services in terms of money or vice versa. It is a statistical economics system where the individual doesn't have much occupational or financial mobility. But here we can predict the relation and the behaviors.
Command economic systems
The government controls this type of economic system. In other words, the government controls all the economics and decides the distributions and use of resources. In this, the government decides the wages of the individuals as well as the price of the commodities. Almost 80% of the industries in this economic system are controlled by the government i.e., railway, aviation, public transport, and many more. As a result, it crested a healthy and equal supply of the resources to the public at a reasonable cost.
Market economic systems
In this economic system, the individual makes economic decisions. It means the customer decides the economic flow. The interaction between the company and the individual is responsible for the distributions of goods and allocation of resources. The individual is free to choose the job and invest in their desired resource, what to consume, and lots more decisions. In this economic system, there is no government role, and they can't have any interference in this economics.
Mixed economic systems
It is a mixture of various types of economics. It combines the command and market economic systems. Keep in mind that in this type of economic system, the government still plays a significant role in the allocation of resources and product or service distributions. But the part of the government is less as compared with the command economic system. The private sector can decide their rates and compete with each other to provide the best value and price to the consumer.
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