Economics and Its Nature and Applications

It won’t be an exaggeration if we say that ‘Economics’ is the key driver in carrying along with the resources, benefits, and people-to-people exchanges. It involves the study and analysis of various alternatives or options available before opting for one particular option, in such a way that the job is done in the best possible manner, with the use of existing resources.

Economics finds its applications in running a house, a school, an organization, an MNC, a region, and the world as such. Nowadays, the recession triggers generated out of the sub-prime lending from the US have shaken the economies of almost all nations around the world. Many of the companies have also suffered as they lose their business, and this cascading effect stops at the door of an individual home. This explains the nature of economics. The domain of economics includes assessing how limited resources are allocated to unlimited wants.

Economics helps in explaining the methods used behind the resource allocation in order to maximise the output with limited resources. Supply, demand, exchange rates, tax rates, preferences, costs, benefits, production relationships etc are key elements of economics. In addition, economics also encompasses the social audit, when provisioning is done for different needs of the society. Such provisioning may not necessarily have direct benefits associated with it, but for the all-around development of infrastructures and the society, some welfare measures are undertaken by the society, companies and individuals. This also comes into the ambit of economic provisioning.