Essay. Words3 Pages. Many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend: what it costs to buy various items; how much money firms earn; how much money there is in total in the economy Economics can be defined as a social science. It is mainly concerned with the continuous process of production, distribution and consumption of various goods and/or services. It is an in depth study of how individuals, organizations, governments and nations make choices about how to allocate scarce resources Essay # Basic Concepts of Economics: 1. Value: Ordinarily, the concept of value is related to the concept of utility. Utility is the want satisfying quality of a thing when we use or consume it. Thus utility is the value-in-use of a commodity. For instance, water quenches our blogger.comted Reading Time: 8 mins
How To Write An Essay on Economics, Complete Guide
In this essay we will discuss about Economics. After reading this essay you will learn about: 1. Subject Matter of Economics 2. Economics as a Science 3, essay on economics. Economics as an Art 4. Neo-Classical View of Marshall 5, essay on economics.
The Classical View of Adam Smith 6. Basic Concepts of Economics 7. Types of Goods in Economics 8. Utility in Economics. Broadly speaking, essay on economics, the formulation of a definition is a precise procedure of explaining the subject matter.
The majority of economic thinkers from Adam Smith to Pigou have defined the subject matter of economics as the study of the causes of material welfare or as the science of wealth.
Marshall, in particular, confined it to the consumption, production, exchange and distribution of wealth by men engaged in the ordinary business of life, essay on economics. Men who are rational beings and act under the existing social, legal and institutional set up.
It excludes the behaviour and activities of socially undesirable and abnormal persons like drunkards, misers, thieves, etc. Professor Robbins, however, finds this subject matter as too restricted in scope to embrace all the facts. He cites numerous examples to show that certain human activities possess a definite economic significance but essay on economics little or no connection with material welfare. The same good or service may promote material welfare at one time and less than one set of circumstances and not at another time under different circumstances.
Robbins is, therefore, essay on economics, of the view that for a good or service to have economic significance it must command a price.
And for a good or service to command a price, it is not essential that it must promote material welfare, rather it must be scarce and capable of being put to alternative uses.
Thus economics is not concerned so much with the analysis of the consumption, production, exchange and distribution of wealth as with a special aspect of human behaviour-that of allocating scarce means among competing ends.
This fundamental problem is ever present in all times and places and in all sets of circumstances. Thus the subject matter of economics includes the daily activities of the household, of the competitive business world and the administration of public resources in order to solve the problem of scarcity of resources. The subject matter of economics includes the study of the problems of consumption, production, exchange and distribution of wealth, as well as the determination of the values of goods and services, the volume of employment and the determinants of economic growth.
Besides, it includes the study of the causes of poverty, unemployment, essay on economics, underdevelopment, inflation, etc. and steps for their removal. There is considerable disagreement among economists whether economics is a science and if it is so, is it a positive or a normative science? In order to answer these questions, it is essential to know what science is and to what extent the characteristics of science are applicable to economics.
A science is a systematized body of knowledge ascertainable by observation and experimentation. It is a body of generalisations, principles, essay on economics or laws which traces out a causal relationship between cause and effect. vi Have universal validity. If these features of a science are applied to economics, it can be said that economics is a science. Economics is a systematized body of knowledge in which economic facts are studied and analysed in a systematic manner.
For instance, economics is divided into consumption, production, exchange, distribution and public finance which have their laws and theories on whose basis these departments are studied and analysed in a systematic manner. Like any other science, the generalisations, theories or laws of economics trace out a causal relationship between two or more phenomena. A definite result is expected to follow from a particular cause in economics like all other sciences. An example of a principle in chemistry is that, all other things being equal, a combination of hydrogen and oxygen in the proportion of 2: 1 will form water.
In physics, the law of gravitation states that things coming from above must fall to the ground at a specific rate, other things being equal. Similarly, in economics, essay on economics, the law of demand tells us that other things remaining the same, a fall in price leads to extension in demand and a rise in price to contraction in demand.
Here rise or fall in price is the cause and, contraction or extension is its effect. Hence economics is essay on economics science like any other science which has its own theories and laws essay on economics establish a relation between cause and effect.
Again, economics is a science because of its self-corrective nature. It goes on revising its conclusions in the light of new facts based on observations. Economic theories or principles are being revised in the fields of macroeconomics, monetary economics, international economics, public finance and economic development. But certain economists do not accord economics the status of a science because it does not possess the other features of a science.
Science is not merely a collection of facts by observation. It also involves testing of facts by experimentation. Unlike natural sciences, there is no scope for experimentation in economics because economics is related to man, his problems and activities. Economic phenomena are very complex as they relate to man whose activities are bound by his tastes, habits, and social and legal institutions of the society in which he lives.
Economics is thus concerned with human beings who act irrationally and there is no scope for experimentation in economics.
Even though economics possesses statistical, mathematical and econometric methods of testing its phenomena but these are not so accurate as to judge the true validity of economic laws and theories. As a result, exact quantitative prediction is not possible in economics. For instance, a rise in price may not lead to contraction in demand rather it may expand it if people fear a shortage in anticipation of war.
Even if demand contracts as a result of the rise in price, it is not possible to predict accurately how much the demand will contract.
It is definitely a science like any other science. Biology and Meteorology are those sciences in which the scope for predictability is less. At the same time, it is possible to predict the exact hour when the tide will rise. But it may not happen so. The tide may rise earlier or later than the predicted time due to some unforeseen circumstances. Marshall, therefore, essay on economics, compared the laws of economics with the laws of tides rather than with the simple and exact law of gravitation.
For the actions of men are so various and uncertain, that the best statement of tendencies, which we can make in a science of human conduct, must needs be inexact and faulty. Art is the practical application of scientific principles. According to J. To analyse the causes and effects of poverty falls within the purview of science and to lay down principles for the removal of poverty is art.
Art facilitates the verification of economic theories. It solves general economic essay on economics. However, certain economists do not consider it advisable to treat economics as both a science and an art. For the pressure of practical problems will hinder the development of economics as a science. This will, in turn, react on the effectiveness of the corresponding art. Therefore, any attempt to solve a particular economic problem in full will so complicate the problem that the work may become hopeless.
Economists today are realising more and more the need for practical application of the conclusions reached on important economic problems. But when the preliminary work has been truly done, Applied Economics will at certain times on certain subjects speak with the authority to which it is entitled.
Economics is thus regarded both a science and an art, though economists prefer to use the term applied economics in place of the latter. Before we discuss whether economics is a positive or normative science, let us understand their meanings which are best described by J.
Keynes father of Lord Keynes in these words:. It was Robbins who in his An Essay on the Nature and Significance of Economic Science brought into sharp focus the controversy as to whether economics is a positive or a normative science. Robbins regards economics as a pure science of what is, essay on economics, which is not concerned with moral or ethical questions. Economics is neutral between ends. The economist has no right to pass judgment on the wisdom or folly of the ends itself.
He is simply concerned with the problem of scarce resources in relation to the ends desired. The manufacture and sale of cigarettes and wine may be injurious essay on economics health and therefore morally unjustifiable, but the economist has no right to pass judgment on this, since both satisfy human wants and involve economic activity. Following the classical economists, essay on economics, Robbins regards the propositions involving the verb ought as different in kind from the proposition involving the verb is.
Thus an economist should not select an end, but remain neutral, and simply point out the means by which the ends can be achieved. Like Robbins, Friedman also considers economics as a positive science. Since the predictions of economics can be essay on economics, economics is a positive science like physics which should be free from value judgments.
According to Friedman, the aim of an economist essay on economics like that of a true scientist who essay on economics new hypotheses. Hypotheses permit us to predict about future events or to explain only what happened in the past. But predictions of such hypotheses may or may not be limited by events.
Thus economics claims to be a positive science like any other natural science, essay on economics. Thus economics is a positive science. It seeks to explain what actually happens and not what ought to happen, essay on economics.
This view was held even by the nineteenth century economists. Almost all leading economists from Nassau Senior and J, essay on economics.
Mill onwards had declared that the science of economics should be concerned with what is and not with what ought to be. Marshall, Pigou, Hawtrey, Frazer and other economists do not agree that economics is only a positive science, essay on economics.
It is not an objective science like natural sciences. This essay on economics due to the essay on economics reasons. First, the assumptions on which economic laws, theories or principles are based relate to man and his problems. When we try to test and predict economic events on their basis, the subjectivity element always enters.
Write a level 7 A* grade Economics Essay / IA (Market Failure Essay Example Included)
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Essay. Words3 Pages. Many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend: what it costs to buy various items; how much money firms earn; how much money there is in total in the economy Essay # Basic Concepts of Economics: 1. Value: Ordinarily, the concept of value is related to the concept of utility. Utility is the want satisfying quality of a thing when we use or consume it. Thus utility is the value-in-use of a commodity. For instance, water quenches our blogger.comted Reading Time: 8 mins · Title: The Economics of Cricket Example essay. Last modified: 27th Sep Introduction: This essay will examine the problems currently facing the sport, how far recent innovations to the game address these issues, and suggest ideas for further reform. The essay will explore how contracts operate for cricketers and, linked closely to this, their wage structure
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