Economics plays a vital role in making modern civilization function, so studying economics helps experts learn how to prevent problems. Studying economics also helps when running or managing a business. Economics is often viewed as a scientific field.Know More
In many ways, modern civilization is based on money. Countries need money to pay for the work they need done, and businesses and governments, which fuel economies, need money to make investments and provide goods and services. The study of economics prepared people for filling these roles, and its study covers a broad range of skills needed to work effectively.
Economics can seem deceptively simple at first, but it is a multidisciplinary field that requires a number of different skills. At the heart of economics is mathematics. Calculating how much a product or service is worth is important, and knowing how interest rates affect prices is critical as well. Economists need to rely on calculus for a wide range of problems.
However, many economists believe that the field is primarily about psychology and human behavior. Effective economic work requires knowing how people will react and learning what they are interested in purchasing. Economists can make accurate predictions in certain areas; in others, modern economics provides little guidance.Learn more about Economics
Adam Smith is often considered the father of economics. Much of what is considered the standard of market theory was written by him over the course of two books, the "Theory of Moral Sentiments" and "An Inquiry into the Nature and Causes of the Wealth of Nations."Full Answer >
According to the Business Insider, economics is like a science because economists use an empirical or scientific method to solve problems. In addition, theories in economics can be tested. The Business Insider adds that economists have access to big data, which allows them to isolate and establish the causal relationships of a scientific inquiry.Full Answer >
Investopedia explains that the origin of economic thought lies with a man named Adam Smith who was heavily influenced by French writers and philosophers. Smith developed the discipline of economics as an alternative to French mercantilism, which was an easily exploited system that benefited the wealthy at the expense of the common classes. Other important economic thinkers include Karl Marx, Milton Friedman and John Maynard Keynes.Full Answer >
Investopedia defines a firm as a business organization, such as a corporation or a partnership, with different levels of legal protection. However, the Ludwig Von Mises Institute states that a firm in economics plays an important role in markets regardless of its legal definition. Firms represent a division of labor and production costs. Small firms may retain one general manager, whereas larger firms have many levels of management and laborers.Full Answer >