Importance of Economics

Economics is the study and understanding of the economy such as the governmental system, money marketing, trades such as production and financial market. The traditional economic system is based on customs, beliefs, and ways that people have been doing things for century’s. when the government has control over the aspect over the production and makes all the decisions and ways to control the economy. With the market of the economic system an individual owns the production and they will make economic decisions through free communications and this will keep the government from interfering in their production. When you are dealing with economics you have to devise a theory, collect the data for the information you will be using, analyze the data so they can be verified or refuted to support the theory.

There is no laboratory in economic the theory is based on past history experiences. There are many assumptions in economics it just has to be made easier to understand in this complex world we live in and there are many assumptions that are used when answering questions in studying the effects of short-run or long-run. Diagrams and equations show many details and allows us to see thing that are important. The distribution of income comes from a pay check from work, the amount of healthcare a person has, education, food,

The way that you can capitalism when the individual owns the production and they decide how to use these productions within the limits of the law; then the owner will market the economic system and free of the enterprise system. How to make the right profit is when you pay the cost of your production – wages, rent, interest, and your taxes have been paid and you have money left