The importance of the economy

The economy is related to the laws and principles that regulate economic functions and various parts. Economics exists because of two basic facts. First, human desire for unlimited and second goods and services, productive resources with it to produce rare goods and services. Therefore, the economy must decide how to use rare resources to obtain maximum satisfaction that may occur in community members. This is a basic problem of scarcity that raises many economic problems.

There is a lot of controversy between economists about the actual content of economic theory or the problem. Lesson material and economic scope have been defined in various ways. Each incomplete definition is inadequate and because of various conflicting definitions, some confusion has been created about the nature and scope of the economy.

Economical principal has been divided into two parts: microeconomics and macroeconomics. In the micro economy we study the economic behavior of individuals, companies or industries in the national economy. Thus it is a study of certain units than all units combined. We mainly learn the following in the economic field:

1) product price
2) Consumer behavior
3) Price factor
4) economic conditions from the people
5) Company study and
6) The location of an industry.

In the macroeconomic economy, we studied the behavior of large aggregate economic as the overall economic conditions such as total production, total consumption, total savings and total investment in it. Including:

1) National Income and Output
2) general price level
3) trade balance and payment
4) external value of money
5) Save and investment and
6) Work and economic growth.

The problem of scarcity and choice of choice can be described by using the possible production curve tool. What basic economic problems, how and for whom to produce can be completed in many ways by the economy. If it gives all economic charges, with personal ownership we get the capitalist economy, for public ownership we get a socialist economy and together with private and public ownership we get a mixed economy.