Economics

Economics is a social science that analyzes the production, distribution, and consumption of goods and services. In this definition, Economics is one of the more fundamental sciences, because it examines the material reproduction of societies. Since it’s object is very complex, the science of economics must be interdisciplinary, and can be exercised in a variety of ways. Economists can focus on how economic agents behave or interact, or they can examine economies as a whole. Accordingly, textbooks often distinguish between microeconomics and macroeconomics. Microeconomics examines the behavior of basic elements in the economy, including individual agents (such as households and firms, or buyers and sellers). This connects with the study of their interactions, and leads to research into markets and mechanisms of exchange. Macroeconomics analyzes the entire economy and the issues that affect it, including unemployment, inflation, and growth. It also analyses the relations between the political and the economic system, and questions of monetary and fiscal policy. One can also distinguish between positive economics (describing “what is”) and normative economics (what ought to be”), which leads to the very important question of economic justice.

Economics intersects with ethics, political philosophy, history, social sciences like psychology, sociology, or anthropology, mathematics, and ecology.

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