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Economics can be described as a science concerned with production, distribution, and consumption of goods and services. Economics is used to study how people, businesses, and governments choose to allocate limited resources. Economics is a broad topic of study divided into two disciplines: microeconomics and macroeconomics. Microeconomics focuses on how firms and individuals make decisions. Microeconomics explains changes in price and why demands and supply rise and fall. Macroeconomics studies the whole economy on both the national level and international level. We cover all topics in economics. Whichever topic your exam is on, we have a professional waiting to do it for you. Some of the topics you will get assistance in include;
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There are many economic indicators that detail a country’s economic performance. Some of the common economic indicators include;
- Gross Domestic Product (GDP) – This is the broadest measure of economic performance. It covers the whole market value of all finished goods and services produced in a country in any given period.
- Retail sales – Retail sales is another method used to measure economic performance. A retail sales report measures the total receipts of all the merchandise sold by businesses. Consumer spending represents more than 2/3 of the GDP, and therefore this report is important in gauging the economy’s direction.
- Industrial production – Industrial production from factories, mines, and utilities covers the capacity utilization ratio, used to estimate the portion of productive capacity used. When industrial production is high, the economy is deemed to be performing well.
- Employment data – When there is an increase in employment, the economy is seen to be moving in the right direction.
- Consumer price index – The consumer price index measures the level of retail price changes, and it is the main factor in measuring inflation.
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Importance of studying economics
- Economics helps students understand how the international markets operate. Through economics, students will understand how different factors such as conflict and inflation will affect the prices of products across different markets.
- Students understand the different aspects of both international and national economics through economics. They can understand the role different states play in enabling economic growth.
- Students will understand how to deal with limited raw materials. They know that preferences come first and never be complete satisfaction.
- Economics helps students understand how to deal with the three productions questions. The questions include;
- What to produce?
- When to produce?
- Which is the best method of production?
Types of economies
- Market economy – This type deals with economic activities that play a vital role in market forces. In this type of economy, sellers decide the prices of goods and services. They ensure that the prices are within reach of their clients. This market is also called a free economy.
- Central planned economy – A central authority controls all the activities. In this economy, the government sets all the prices, and only the government can change the said prices.
- Mixed economy – This is a combination of market economy and centrally planned economy. In this type of market, there are government controls to ensure no consumer exploitation. At the same time, the government majorly leaves the prices to be determined by market forces.
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