What Economics Is Essay

493 WordsMay 13, 20152 Pages
I. What economics is? When people talks about economic problems, like the government will build a new factory, or the exchange rate is decreased, people would focus on a specific phenomenon. Economics is a science which try to explain the economic phenomena in people’s daily life, just like physics, mathematics, and other sciences. Actually, all of kinds of science are ways to help people get a better life use by different methods. Biological study focus on the genetic methods and hope to make people have a longer life. Physical study pay attention on logicality and hope to tell people the rules about their daily life. Obviously, economic study is trying to help people to increase their wealth and promote the quality of their life. Economics can be separated into two main parts, microeconomics and macroeconomics. Microeconomics researches the production and consumption of products. It also study how the wealth transfer from a people to another, and how people interact with others through the market. Microeconomics not only shows how people’s actions affect market and price to make them fluctuate, it also shows how people decide demand and supply in the market and the fluctuation curve of price. Macroeconomics explains the phenomena of countries from a broader view. It considers about the society’s behaviours and influence, like economic growth, inflation, employment rate, and so on. Macroeconomics analyse the entire country activities, government’s policies, and exchange rates, to explain the economy situation and point a clear orientation for countries. Since Adam Smith established the modern economic theory, the mainstream research methods of economy are based on statistics and logic. Economics is a kind of search by formula expressions to describe fluctuation of prices, which means mathematical methods is very important to economic
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