Economics(Word版).doc

Economics From Wikipedia, the free encyclopedia Economics studies trade, production and consumption decisions, such as those that occur in a traditional marketplace. Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek ο?κονομ?α (oikonomia, management of a household, administration) from ο?κο? (oikos, house) + ν?μο? (nomos, custom or law), hence rules of the house(hold). (therefore, the term economics refers to or means “rules of the house(hold)”)Current economic models developed out of the broader field of political economy in the late 19th century, owing to a desire to use an empirical approach more akin to (more similar to)the physical sciences.[2] A definition that captures much of modern economics is that of Lionel Robbins in a 1932 essay: the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.[3] Scarcity means that available resources are insufficient to satisfy all wants and needs. Absent scarcity and alternative uses of available resources, there is no economic problem. (If there are sufficient resources and no alternative uses of available resources,...)The subject thus defined involves the study of choices as they are affected by incentives and resources.(The subject defined as such involves/includes the study of choices because they are affected by incentives and resources.) Economics aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business, finance and government, but also in crime,[4] education,[5] the family, health, law, politics, religion,[6] social institutions, war,[7] and science.[8] The expanding domain of economics in the social sciences has been described as economic imperialism.[9][10] Common distinctions are drawn between various dimensions of economics: between positive economics (describing what is)