Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία(oikonomia, " management of a household, administration" ) from οἶκος (oikos, " house" ) + νόμος (nomos, " custom" or " law" ), hence " rules with the house(hold)". Current economic types emerged from the broader discipline of political economy in the later 19th hundred years. A primary stimulation for the development of modern economics was the desire to use an empirical approach more similar to the physical sciences. Economics aims to describe how economies work and exactly how economic agents interact. Economic analysis is applied during society, in business, finance and government, nevertheless also incrime, education, the family, health, law, politics, religion, social corporations, war, and science. The increasing domain of economics in the social sciences has been described as economic imperialism. Common differences are drawn between several dimensions of economics. The main textbook variation is between microeconomics, which looks at the behavior of basic elements in the economy, including individual markets and agents (such as consumers and firms, buyers and sellers), and macroeconomics, which addresses concerns affecting an entire economy, which include unemployment, pumpiing, economic expansion, and budgetary and fiscal policy. Other variations include: between positive economics (describing " what is" ) and normative economics (advocating " what must be" ); between financial theory and applied economics; between mainstream economics (more " orthodox" coping with the " rationality-individualism-equilibrium nexus" ) and heterodox economics (more " radical" dealing with the " institutions-history-social composition nexus" ); and between rational and behavioral economics. -------------------------------------------------
Economic analysts study operate, production and consumption decisions, such as those that occur in a traditionalmarketplace. Primary article: Microeconomics
Microeconomics, like macroeconomics, is a critical method for studying the economy as a system. It goodies households and firms communicating through individual markets since irreducible elements of the economy, given scarcity and government regulation. A market might be to get a product, declare fresh hammer toe, or the services of a factor of production, say bricklaying. The theory considers aggregates of quantity demanded by purchasers and quantity supplied by sellers at each possible cost per product. It weaves these jointly to describe how the market may reach equilibrium as to price and quantity or respond to market changes after some time. Such research includes the idea of supply and demand. In addition, it examines market structures, such as perfect competition andmonopoly for implications about behavior and economic efficiency. Evaluation of difference in a single market often arises from the streamlining assumption that relations consist of markets continue to be unchanged, that may be, partial-equilibrium analysis. General-equilibriumtheory allows for within different markets and aggregates across all markets, which includes their actions and connections toward sense of balance. Production, cost, and efficiency
Main content articles: Production theory basics, Opportunity cost, Economic efficiency, and Production-possibility frontier In microeconomics, production is the conversion of inputs into outputs. It is an economic process that uses inputs to produce a commodity for exchange or direct use. Development is a flowand thus a rate of outcome per time frame. Distinctions contain such creation alternatives because for consumption (food, haircuts, etc . ) vs . investment goods (new tractors, buildings, tracks, etc . ), public goods (national defense, small-pox vaccinations, and so forth ) or private goods (new computer systems, bananas, etc . ), and " guns" vs . " butter". Opportunity cost refers to the economic cost of production: the value of another best option foregone....