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History, Benefits & Scope

Definition of Economics

Economics is a study of various things in the management of resources. This management includes all groups, individuals, groups to a country.

Management of these resources is expected to achieve prosperity and prosperity. With the existence of an economics, the behavior and legal system of a country can be directed well. So that a country that could become a prosperous and prosperous country.

 Understanding Economics According to Experts

In addition to the general understanding of economics, there are also some experts who explain the notion of economics , as follows:

According to Adam Smith, explains that economics is a science that can be said to mathematically study behavior or human behavior with the efforts they make to allocate limited resources to meet their needs.

Aristotle said that science economics is likened to a branch that can be broken down into two paths, namely the possibility to be used and to be exchanged for goods. Where these two things are related to the value of the use and exchange rate of an item or service.

According to Von Neumann and Mogenstern, that economics is a scientific discipline that should be treated scientifically. Where when economics is treated unscientiously because the prominent figures are busy dealing with solutions to the pressing problems of the era, then this science will be very unfortunate.

According to Richard G Lipsey defines that economics is a science or studies concerning the use of scarce resources to meet limited human needs. So that the need will still be fulfilled.

According to Alfred Marshalli, economics is a study of everyday human life.

According to Suherman Rosydi, economics is one of the branches of science that has the aim of providing knowledge and understanding of the characteristics or symptoms of society that arise due to human actions in an effort to fulfill needs or to achieve prosperity.

History of Economics

 History of Economics

An economics has a history that began in past. Every history has a different story at a time. Economics began to be introduced by Adam Smith. Where, initially, Adam Smith began to introduce economics and develop economics as one branch of science.

Economic science broadly begins with the classical school. Where this flow was spearheaded by Adam Smith, with the flow theory emphasizing the 1945 invisible hand which can regulate the distribution of resources. At that time, government became one of the things that could disrupt the process in this flow, because with the existence of government many things were limited.

The concept of this invisible hand represented in the market mechanism through price, as the main instrument or media. In 1930, this stream failed because the market was unable to react to the turmoil that occurred in the stock market.

After that, several new theories emerged mentioned by Keynes in his book " General theory of Employment, interest, and money " which explains that in a market does not always create a balance. Therefore, government interference must be carried out in order to support the distribution of resources so that they can achieve their goals.

In economics, originally known as Greek, namely oikos and nomos . By having a meaning of oikos means family, household, whereas nomos means regulation, law. So that it can be interpreted as household rules or household management.

Benefits of Economics

 Benefits of Economics

Economic science certainly has many benefits in various fields in human life. Where there is a life, economics will always be applied. For more details, here are some of the benefits of economics:

1. Can instill positive traits to lead a better life

By studying economics, many positive traits can be taken as we will be more vigilant, willing, and always on guard or ready to face any situation economic conditions which can happen at any time.

2. Understand about the potential and limitations of economic policy

In the world of economics, life in a state will certainly cause many economic-related problems, so that by studying economics, we can understand the potential and limitations of the current economic policies.

3 . Understand the manifestation of economic behavior in the real world

By learning economics, it will be easier to understand how economic behavior manifests in the real world. Because in the real world, all economic activities can be witnessed and carried out clearly.

4. More proficient in the field of economics

Learning economics can make us become more proficient at completing various tasks and problems in the economic field.

5. Can be wiser

Learning related to economics, can make us be wiser in looking at everything. So that the decision will be made right on purpose.

Scope of Economics

 Scope of Economics

In the context of economics, the scope is divided into 2 parts, namely macro and micro. The following is an explanation of the scope of economics:

1. Macroeconomics

Macroeconomics is often referred to as income theory. Where macroeconomics is more focused on analyzing the determination of the level of economic activity as measured by income. So that the macroeconomic mechanism is in all the interrelated components starting from production, until the allocation of goods to consumers.

2. Microeconomics

In real conditions, microeconomics is a small-scale economic concept. Where, microeconomics is often referred to as price theory. The microeconomic concept involves consumers with sellers in the market. So that microeconomics includes the behavior of buyers (consumers) and producer behavior in transacting individually in the market.

Now, we know some knowledge about the understanding of economics, it is easier to determine the right decisions for the things we are facing . So it's very important for you to study economics. Hopefully this article will be useful for you.


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