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Essay on Economics
According to the Princeton dictionary economics is that branch of social science, which specializes in functions of production and distribution, and consumption of goods and services and also of their management in an economic system.
Generally, economics is an aspect of social science, and it is a discipline of study that deals with human activities and how they interact to satisfy their needs and wants. However, there have been many definitions of economics which have been applied and altered throughout centuries. John Maynard Keynes, once said that "Economics is the science of thinking." Hence, economics and subsequently its definitions have shifted their focus from the study of wealth to the welfare of people to trade-offs.
The discipline of economics is considered as normative, only one there is involvement of alternatives and one choice is to be made over other alternatives. Conversely, the discipline is states as positive, when esconomics in the most objective manner tries to predict and then rationalize outcomes and the consequences of the choices made, under a given or limited set of assumptions and observations. However, the alternative or the choice of, which assumptions to establish in a given economic model and which of the observations to use in the study is normative.
Moreover, economics, emphasises more on measurable variables. Based on this it is didvided into two broad categoreis. The two main branches are microeconomics, that focuses on individual groups. This concerns the economics of households and business organisations.
On the other hand, macroeconomics deals with the economics of the economy as a whole unit. Hence, macroeconomics deals with the aggreate supply and demand for various economic elements, such as money, capital and commodities........
