Economics is a branch of social science that defines and discusses the production, distribution, and consumption of goods and services in society. There are different types of an economy that the society uses depending on its population, technological advancement, trade relations with other communities, and the level of its natural resources. The types include the traditional economy which is utilized by a society that has limited technological development. It mainly focuses on the production of survival necessities such as water and food and the excess production is used for commercial transactions.

Besides, the traditional economy relies on inheritance to distribute wealth and possessions depending on the standing of an individual in the cultural customs. The market economy only relies on the needs and wants of the customers’ population. It is developed by three main factors namely, demand, supply, and competition. Competition in the market economy influences the business people to produce quality products and services at a lower price. Moreover, the command economy controls wealth and resources by distributing it according to the population. A mixed economy refers to an economic system that puts into practice all the above economies in society.

Understanding economics and why it is important

Importance of Economics

  • Provides solutions to a shortage of raw material- Economics is essential because it provides mechanisms that look at the possible effects when a society runs short of important raw materials such as gas and oil. The mechanisms provide solutions that prevent the consequences from happening.
  • Teaches the society how to distribute resources: Economics guides individuals who are in charge of products and services to distribute them equally. Individuals learn to what extent they should redistribute their income in society. Also, economics helps people to have a better understanding that inequality of products and services in the society will create unnecessary economic and social differences which might decrease the growth of the economy. Therefore, economics guides and advice people on the right way to distribute their products and services.
  • It provides measures of dealing with an economic crisis: Economics is important because it teaches the society how to cope when an economic crisis. When there is an economic crisis in society individuals are advised not to increase taxes and tariffs because it will not solve the issue but instead it will do more harm to those individuals from less privileged areas in the community.
  • Evaluation: Economics is important in the society because it helps individuals be aware of the outcomes depending on different variables affecting its economy. This helps the government to improve the welfare of healthcare, transportation, learning institutions, and markets hence overcoming economic failure.
  • Applying economics in daily life: In everyday social issues, some economic forces influence the activities that individuals engage in. Therefore, economics encourages people to apply economics in everyday life for them to use their resources well.
  • Social efficiency: Economics provide effective solutions in the free market that helps it to overcome marketing failure. For example, excessive movement to the central centers can cause congestions and pollution which is not healthy for both humans and the environment. With an economist expert, they can suggest a fine that will be charged anyone who will be found idling in the centers. By doing this it will reduce movements to centers, therefore, preventing congestion and environmental pollution. Also, the fines collected will be used to improve the economy of the society.
  • Forecasts: Economic forecast assists people to understand the current situation and foresee the consequences in the future. It helps the government to make decisions that will be effective in the future and that will not raise any taxes for the citizens.

Economics assignment help is important because it provides students with valuable knowledge of how products and services are utilized and distributed in society. Also, economics helps people to learn how to manage their resources effectively. Through economics, markets understand the financial concepts of supply, demand, distribution, and competition.

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