The place and role of economics in the development society
Economics plays a huge role in society.
First, it provides people with the material conditions of existence - food, clothing, housing and other commodities.
Second, the economic sphere of society is a system component of society, the crucial area of his life, which determines the course of all processes taking place in society .
Economics - is an area of human activity that creates the wealth to meet their diverse needs . Need is called an objective human need anything.
2) An economic system is the system of producing and distributing of goods and services and allocating resources in a society. It includes the combination of the various institutions, agencies, entities (or even sectors as described by some authors) and consumers that comprise the economic structure of a given community. A related concept is the mode of production.Capitalist system is economic system in which the means of production and distribution are privately or corporately owned and development is proportional to the accumulation and reinvestment of profits gained in a free market. Traditional economy system is the original economic system, in which the traditions, customs and beliefs shape goods and products creates a society. Countries that use this type of economic system often rural and farm-based.Mixed economy is an economic system in which both the private sector and state direct the economy, reflecting characteristics of both market economies and planned economies.Most mixed economies can be described as market economies with strongregulatory oversight, and many mixed economies feature a variety of government-run enterprises and governmental provision of public goods.
3) Essence of employment unemployment and inflation Employment is a relationship between two parties, usually based on a contract, one being the employer and the other being the employee.Unemployment (or joblessness) occurs when people are without work and actively seeking work. inflation is a persistent increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services.
4) Modern economic theory tends to separate itself from classical economic theory by looking at more than just the source of production and the invisible hand theory. Modern economics also looks at items such as the role of demand, money supply, and its effect on growth or monetarism and free trade. In some ways, modern economic theory is a much more macroeconomic study that looks at vast swaths of a single economy.
5) law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant. If the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in quantity of good demanded by the consumer will be negatively correlated to the change in the price of the good.
6) Want might also be examined in economics as a necessary ingredient in sustaining and perpetuating capitalist societies that are organised around principles like consumerism. In economics, a want is something that is desired. It is said that every person has unlimited wants, but limited resources (Economics is based on the assumption that only limited resources are available to us from the infinite Universe). Thus, people cannot have everything they want and must look for the most affordable alternatives.
7 Property relations and their role in the economy.