Final Essay

Economics is the social science that study about human business activity such as consumption, production, saving, exchanging and distribution of commodities. Consumption and production are the two main factors of economics. Scarcity is the central economic problem. Human scarcity born between the existence of unlimited human wants and limited factors of production (eg,.Land, Labour, Capatical, Technology and etc.,). Economics can be satisfied the human wants with limited resources. Microeconomics and Macroeconomics are two main area of economics.

(1) Microeconomics

Microeconomics is the economics area that analyses individual decision making of consumers and producers and they make markets together. It also studies the improvement of markets

Likewise, a subsistence economy that depends on the nature of resource to complement of human basic needs or wants such as the tailor’s made the dress mainly for his family own wearing.

Types of Economics

(Gemma, 2014 ) Mentioned that there are four types of economics: Traditional Economic System, Command Economic System, Market Economic System and Mixed Economic System.

a) Traditional Economic System A traditional economic system is the most traditional and ancient type of economy in the world. In the traditional economy, beliefs, customs, traditions, religions, socials and etc., largely determined economic matters. (Amadeo, 2017) Referred Traditional economies depend on agriculture, fishing, hunting, gathering or some combination of the above. In place of Money, they are using barter . Most traditional economies operate in emerging markets and developing countries such as Africa, Asia, Latin America and the Middle East. Economists and anthropologists believe that traditional economies started all other economics. So, they expect remaining traditional economies to develop into mixed, market, and command economies over

Customer choice goods that they are willing to pay for them. The owner used their resources in production to obtain the maximum output as possible as they can. Therefore, the price system reply on the consumers wish and allocates the community’s productive resources. Labors can also choose work wherever they want freely. There is competitive markets responsive to consumers.

However, market competition may be limited .There can be inequity and the sellers ignored the environment and other social goals.

d) Mixed Economic System

An attempt to get the both command and market economic system, mixed economic system are appeared .Mixed economic system combine the advantages of command and market economic system consisting of private sector and public sector.

Practically, subjective judgments are involving many economic decision .People cannot make objective judgments solely in economic decision .So that,the economists try to make objective decision as possible as they can .They establish principles that are showing how economy works and how can be used to predict likely policies result .As the nature of economics is the zone of economy where objectivity ends and subjectivity