Economics

Name:
Professor:
Course:
Date:
Economics
Economics is a social science that deals with the act of producing, getting the goods and services to the market for easy access by the consumers. Economics tries to understand how individual agents cooperate in resource allocation with the aim of customers need satisfaction as well as maximizing output. Economics focuses mainly on the factors of production. They are vital ingredients that build up economic activity in the world today. Economics tries to explain how the components are in limited supply and how can a man make the right decision when making a selection of the ingredients to carry out production. In the 19th century, the discipline was given the name economics of political economy as the short term of economic science by Alfred Marshall. Therefore, it was subjected to severe thinking and made increased application of mathematics that assisted in supporting the efforts to have accepted it as a science. It separated this from political science and other social sciences. The crucial goal of economics is to raise the living standard of individuals in their day to day activities.
In 1932, Lionel Robbins came up with implications, and he affirmed that the previous economists aligned their studies on the study of wealth; that is, how wealth is generated, distributed, consumed and how wealth can accumulate. But he put it clear that economics can be used to learn other things, for example, war, that is separate from its usual focus.

It is because the primary goal of war is to emerge winners at the end, it generates both costs and benefits, and human resources and other resources like capital employed toward achieving the primary goal. For instance, if the participants see that they cannot win or the costs used overweigh the benefits, the deciding actors, therefore, may never go to war. They instead decide to explore other alternatives (Stretton, 1999).
Economics is composed of two main branches. They include microeconomics and macroeconomics. Microeconomics tries to explain how the units making an arena for buyers and sellers interact during the selling process. For instance, in case of the free market, the number of products demanded by consumers and the quantity supplied by the sellers might reach a condition called economic equilibrium. In the real world, some problems may alter stability, and for any balance attained in the sometimes it is not equal. For example, if the supply of services by health care is limited by factors, for instance, external factors the equilibrium price for the services may be unattainable for many people who have a desire in the services but are unable to pay for them (Mukherjee, 2002).
The second branch of economics is macroeconomics. This branch of economics inspects the economy as a whole, and it explains on an aggregate combination of the individual economic agents and how the financial agents interact with each other. The aggregates, in this case, include: the rate of unemployment, increase in general price level, national income and the output of the country. Some sub aggregates work together to complete the model. They are total consumption and investment done by the households. Macroeconomics also studies the effects of fiscal and monetary policies that are responsible for the control of money supply in the economy.
In conclusion, economics is of importance to every country and the human race as a whole. The fathers of economics that are Milton Keynes and his fellow economists of the past played a significant role in the development of economics to the modern economy.

Works Cited
Mukherjee S. Modern Economic Theory, New Age International, 2002.
Stretton H. Economics: A New Introduction, Pluto Press, 1999.