Can You Explain Subject Matter Of Economics?


2 Answers

melanie hou Profile
melanie hou answered
What isn't subject matter of economics? Economics is a way of explaining the world--the way people behave, the way markets work, the way governments work.... Economics can be applied to nearly any question--it explains history, societies, etc etc.
Lily James Profile
Lily James answered
Economics is the science that studies how scarce resources are employed for the satisfaction of the needs of men living in the society. It is interested in the essential operations of production, distribution and consumption of goods and service.

As I see it, the important components of the subject matter of economics

1. The presence of scarcity;

2. The behavior of individuals who are faced with that scarcity;

3. Interaction of individuals who are faced with scarcity; and

4. The existence of institutions to facilitate the interaction of individuals who are faced with scarcity.

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