Portal:Business and economics/Intro
In the social sciences, economics is the study of human choice behavior and the methodology used to make associated investment and production decisions; in particular, though not limited to, how those choices and decisions determine the allocation of scarce resources and their effect on production, distribution, and consumption. The word "economics" is from the Greek words οἶκος [oikos], meaning "family, household, estate", and νέμω [nemo], or "distribution, allocation", hence meaning "household management" or "management of the state". An economist is a person using economic concepts and data in the course of employment, or someone who has earned a university degree in the subject. Economics undergraduate courses cover at least two main branches:
- Microeconomics studies the behavior of individual households and firms in making decisions on the allocation of limited resources. Microeconomics applies to markets where goods or services are bought and sold. It examines how decisions and behaviors affect the supply and demand for goods and services, which determine prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.
- Macroeconomics studies inflation, price levels, rates of growth, national income, gross domestic product and changes in unemployment of a country, rather than the more specific details that microeconomics studies.
There are also other sub-fields of economics.
In economics, the field economic systems studies and analyzes the organizing of production, distribution, consumption and investment, as well as optimal resource allocation and institutional design. Traditionally, the study of economic systems was based on a dichotomy between market economies and planned economies, but contemporary studies compare and contrast a number of different systems, such as ownership structure (public, private or collective), economic coordination (planning, markets or mixed systems), management structure (hierarchy versus adhocracy), the incentive system, and the level of centralization in decision-making. An economy can be analyzed in terms of its economic sectors, the classic breakdown being into primary, secondary and tertiary.
Economic policy comprises the actions that governments take in the economic field. It covers the systems for setting interest rates and the government budget as well as the labor market regulations, national ownership, trade policy, monetary policy, fiscal policy, regulatory policy, anti-trust policy and industrial policy. In economics, sustainable development refers to development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
A business, also known as an enterprise or a firm, is an organization involved in the trade of goods, services, or both to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange of other goods, services, or money. Businesses may also be not-for-profit or state-owned. Management in business and organizations is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading and directing, and controlling an organization or initiative to accomplish a goal. Management is also an academic discipline, and is traditionally taught at business schools.