Every nations and country has their own strategy
on how to improve and enhance their economic status. In each country, economy is
very important because this is where the survival of the country lies. The
progress of the economy depends the abundant resources or source of natural
products and those people who are running it or manipulating it. These two
factors should work hand in hand in order to determine the weakness and strength
of each so that it will immediately fix if there are any loop hole in the
transactions. Many people give importance and discuss about the usage of the
economy and what is the really purpose of this why is it exists. Economy is
already exists, but the years go by it keeps upgraded and improve by some
theorist and economist. Economics is actually the study of social science in
which it deals and studies the production, distribution and consumption of goods
and services. Basically the status of an economy is the signs if the investments
and infrastructures in business world are doing well or not. Economics is about
social science that deals with the production, distribution and consumption of
goods and services. When it talks about the production it depends the sources or
resources of certain place if it is abundant or not. Here the economist makes
feasibility study the place and the resources in which they could determine what
certain products they are to produce. Then the economist studies how to
distribute this to the consumers in safer and fastest way. Distribution talks
about the types of the services being offered by the certain company in which
their aims are to meet the expectations and satisfaction of the consumers. When
it talks to consumption of goods and services it deals with the evaluation of
the products, goods and services in which they are easily determine which areas
or section is not performing well or having poor performance. Through they can
easily patch up the discrepancies and problems that arise in their company so
that they can easily revised their systems and methods of their management. The
terms economic comes from the Greek for oikos (house) and nomos (custom or law)
which means the rules of the household. Economics is so called a social science
for the reason that it studies the society as well as the human behavior as a
relationship between ends and scarce means which have alternative uses. In
economics we have term the scarcity which means the insufficient supply of the
resources and the demand of that products which comes from that resources is
very high in which the resources are no longer compensate and the needs and
wants of the people. Scarcity happens when there are circumstances that cannot
be stop such as the natural disasters. The demands on this time are very high
for the reason that the suppliers are not able to supply. The suppliers not
able to supply for the reason that the resources are destroyed brings by natural
disaster such as cyclones, hurricanes, earthquake and tsunamis. For instance, if
a certain place is having a factory or companies that produce sea products, it
can be altered if there is natural disasters such hurricane or tsunami for the
reason that the workers are not able to go to the sea because of the risk. In
this case they are not able get the supply as well as the demand is high for the
reason that the consumers’ wants and need are not able to meet because they are
also affected with the natural disasters. This situation is just only a sample
why scarcity happens. Absent scarcity and alternative uses of available
resources, the people can assure that they cannot experience the economic
problem. The subject involves the study of choices as they are affected by
incentives and resources. Furthermore, the other usage of economics that plays a
significant role in developing of economy is that it explains how economies, as
a economic systems, work and what the relations are between economic players
which are the agents in the larger society. Methods of economic analysis have
been increasingly applied to fields that involve people including the officials
to make choices in a social context, such as a crime, education, the family,
health, law, politics, religion and social institutions and war. With this
information being given, these are the reasons why there are lots of theory
evolves where there is only the same purpose which is to boost and enhance the
economy.
The discipline of economics as we understand it
today is a relatively recent development. Economic theory provides an outlet for
research in all areas of economics based on rigorous theoretical reasoning and
on topics in mathematics that are supported by the analysis of economic
problems. Economic theory surveys for particular areas of research that clearly
set forth the basic underlying concepts and ideas, the essential technical
apparatuses, and the central open questions. The help of economic theory the
economist have already a guide on how to manage and boost the economy. Modern
economic thought emerged in the 17th and 18th centuries as
the western world began its transformation from an agrarian to an industrial
society. With this economic thought there are many of theories emerge for the
reason that in economic theories are constantly changing. The theory of
Keynesian is emphasizing on the activist government policies to promote high
employment, dominated economic policymaking in the early post war period. With
regards of this theory it clearly describes here the participation of the
government in which it plays a major role in managing the economy. Government is
important because they are the on who will control and finance the expenses in
order to make the economy become progressive. In Monetarism theory it deals
about the updates the Quantity Theory. In monetarism theory really concerned the
numbers of products being produce for the reason that can immediately supply if
ever the demand is high. It emphasizes the critical role of monetary growth in
determining inflation. Rational Expectations Theory provides a contemporary
rationale for the pre-Keynesian tradition in which there is restrictions or
limitations of government involvement in economy. It argues that the market’s
ability to anticipate government policy actions limits their effectiveness. The
third theory is Supply-side Economics concerns with economic growth as a
fundamental prerequisite for improving society’s material well-being. It deals
with the products in order to save and invest if the nation’s economy is to
grow.
These theories play an important role in order
to make the economy become progressive because it provides concepts and ideas in
analyzing the complicated situation and problems that deals with economic
problems. The concepts and ideas being provided by the theories, it will serve
as the guidance for the government on how to manage the economy with fewer
expenses.
References:
Alison Alexander,
James Owers,
Rod Carveth,
C. Ann Hollifield,
Albert N. Greco;
Lawrence Erlbaum Associates, 2004
Ray Marshall,
Vernon M. Briggs Jr.;
Irwin, 1989
Terry Black,
Lynn Gallagher;
Australian Journal of Management, Vol. 24, 1999
Mauricio G. Villena,
Marcelo J. Villena;
Journal of Economic Issues, Vol. 38, 2004
.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment