Definition, History, And Details On Economics And Study

Economic meaning in Hindi is अर्थशास्त्र (study of currency, money, and property). This means a study of social silence related to consumption, production, and distribution of goods. It can help improve the standard of living and make society a better place. 

It is like a scientific study; it developed various theories and can be used to improve standards and make things worse. It depends on the priorities, culture and consideration of the society.  

Definition of economics  

Economics comes from two Greek words, ‘eco’, which means home, and ‘nomos’ means accounts. Economics is a study about scarcity and choice; it is also a way to reconcile unlimited needs with limited choice. It is all about the coordination of activities from the side of the specialization. 

In simpler words, it is a study of using resources for all government, business, nation, and individual choices. It focuses on the actions of a human being based on the rational behavior assumption and seeking the most benefits of unity. 

The father of economics, Adam Smith, defines economics as ‘An inquiry into the nature and causes of the wealth of nations’. Alfred marshall defined this as a study of man in the buns of ordinary life. It is the study of wealth, which includes the study of humanity.

There is criticism and alternative thoughts of various economists to define economics. But in simpler words, it is a study of society and people to choose money to use or not use in productive resources. 

History of economics  

The birth of economics may be traced to 1776, by the Scottish philosopher Adam Smith, known as the father of economics. He published a book named, “An inquiry into the nature and causes of the wealth of the nation”  though there was the existence of economics before that, where the Greeks made a significant contribution in economical compounds of society. Between the 105th to 18th centuries, many literature discussions developed economic nationalism. However, Smith was the first person who wrote the first full-scale teaser on the economical and magisterial influence, which is known as classical economics. 

The history of economists illustrates that various economists influence society and develop cultural value and reshape it by themselves through their ideas and vision on individual economics. Though some of the histories of economists declared less essential definitions in the theory of economics, and even the definition and concept of Smith also went through criticism. However, his definition and concept created the pillar of economics research. 

Types of economics  

The study of economics is mainly divided into two parts according to its type, Macroeconomic and microeconomics. 

Macroeconomics 

It is the study of both national and international fields of economic data and variables. It focuses on distinct geographical regions, continents, countries, and even the world. The primary study area is the broad economic cycle and growth and development. Foreign trade, monetary policy, government fiscal, inflation level, unemployment, interest rates changes in GDP, etc., are included in macroeconomics. Hence, it can be said that macroeconomics is a study of economics more broadly regarding the world economic culture and tradition.  

Microeconomics  

Microeconomics tries to explain human behavior, the changes in price and its effect on human society and economic status, and the different value of different goods. Microeconomics is not a study of broader space; instead, it focuses on individual consumers and decisions made by firms. This individual decision can be made by a person, household, organization or business, government agency, etc. 

The overall study of micro and macroeconomics states the brief concept of “what is economics ?”. 

Its study of microeconomics explains how different goods are made from different prices and value differently, how individuals make different discretion in improving, trade, coordination, and cooperation with each other. The area of microeconomics ranges from dynamics of supply, cysts associated with production and supply of goods, and how business firms organize different functions. Along with that, it is a study that provides approaches to risk, uncertainty, and strategic game theory.

Conclusion

Economics is good because of its ability to explain the economy well. It provides all the precise information of the history of the world, the theory of making a profit, and dealing with uncertainty which can be applicable in real-life issues. Economics can only be understood if we study with theories and models. It is vital to learn about history and theories of economics with different applications in the practical field.