There are two divisions or branches of economics; these are called as Macroeconomics and Microeconomics.
Macroeconomics is the economics the deals with the behavior of the whole or entire economy. This branch of economics is concerned about the level of production, the rate of unemployment as well as in the gross national product and others.
Microeconomics is the economics that deals with the behavior of a specific segment such as the consumers, different business firms, the prices of products in the market and others. It is concerned with the individual unit and not as a whole.
Economics is divided into certain divisions; these are the Production, the Consumption, the Distribution, the Exchange, and the Public Finance.
Production in terms of economics means as the manufacturing process of goods to provide and satisfy the different needs of consumers. utilization of products, goods and services by the consumers in a given amount of time.
Distribution means the way the goods products and services are delivered to the consumers, as well as the way the products, goods and services are allocated to the consumers through the different economic outlets.
Exchange means the way the products, goods or services are transferred to one person to another.
The Public Finance means the way the government implement financial activities such as on taxation, on expenditures and other else.
There are certain factors that involved in the production in economics; these are the Land, the Labor, the Capital, the Entrepreneur, and the Foreign Exchange.
The Land is one of the important factors in production. Land refers to the natural resources that are going to be utilized in order to produce products or goods.
Labor means the people or the workforce or the manpower that will do specific activities in order to produce goods or services. They are the employee or the workers of a certain company.
Capital means the physical productive capacity such as machines, tools, factories, money and other attributes that are needed to produced products or goods.
Entrepreneur means an individual who organizes some other factors and brings all these factors together in order to produce products or goods. This activity may also be performed by groups of individual as in the form of cooperative of corporation.
Foreign Exchange means the foreign money or currencies that are reserved in order to import material or raw materials that are needed in the production processes.
Copyright © 2013 - varron.ExpertsColumn.Com · All Rights Reserved | Powered by: ExpertsColumn.com