Business Essay: Economics

Business Essay: Economics

So much can be said about both business and economics. A blogger does even know where to start. Perhaps, a rational essay with the aim of discussing the subject is the best way to look at this matter, so… The purpose of the present essay is to briefly discuss business and economics.

Another exciting major available to commerce and business students is economics. However, care must be taken in choosing this particular program, since economists may encounter less job openings upon graduation than, for instance, accountants or marketers. Still, economists may pursue careers in academia, or perhaps in international organizations such as the IMF (International Monetary Fund).

Thus, economics is a social science dealing with the problematic allocation of limited resources given unlimited human wants. Further, economics branches out into microeconomics and macroeconomics. Related fields include finance and econometrics. Microeconomics focuses on individual economic behavior and that of the firm, while macroeconomics looks at larger scale economic events, such as countries’ economies, or very large corporations. A recent, and fairly unpopular among scholars, new development has been mesoeconomics, a term used to describe concepts which fail to fall under either the microeconomics or macroeconomics umbrellas.

Digital Art Illusion of Movement Animation Optical Illusion Cause Keyframes. The age of a woman doesn’t mean a thing. The best tunes are played on the oldest fiddles. (Ralph Waldo Emerson)

Girl sitting on ornamental chairs. Image: Elena.

Further, normative economics prescribes what should be done, and may stem from personal opinions or political convictions, whereas factual economics focuses on what actually is. Economics rests on assumptions such as ceteris paribus – Latin for “other things being equal”.

One of the better known foundamental concepts of this theoretical body of knowledge describes economic equilibrium. Simply put, economic equilibrium is reached by the market when producers (suppliers) and consumers (buyers) “agree” on a price and quantity. Adam Smith continues to be considered the founding father of economics, with several economic theoretical constructs outlined in his book The Wealth of Nations, while Keynesian economics represent an alternative school of thought pioneered by John Maynard Keynes. Thus, the aim of the present brief paper was to express some known basic facts about economics, as they apply to the business world.