The economy and its branches are the science that is responsible for the study of resources, production, distribution, and the use and consumption of resources to satisfy human needs. The economy is what creates the ties between society and the public and private administration . It should be noted that before there was a science for the study of economics, it was already present in our lives.
The economy is what moves the world in these times; Well, we all need something to survive and for that there are exchanges between goods or other things that favor all parties involved. The economy is responsible for making these exchanges possible.
The situation of a country can be measured through its economy, it studies the exchange of goods, the production, distribution and consumption of services. In this way the situation of a country is established and studied to improve its national and international relations; and in this way avoid possible problems in the exchange of different resources.
What is the economy?
This science is in charge of studying, organizing, directing and placing the rules between the exchanges of goods and services, work, capital, natural resources and the means of production in favor of society to avoid future crises by applying the traditional economy .
Today the economy can determine how people use some low-production materials to generate valued goods and how they are responsible for distributing these among the other parties involved. That is, it analyzes man’s behavior while using available resources to satisfy his own needs .
This consists of multiple techniques to carry out all your studies in a successful way, with these it refers to mathematical studies, finance studies, human resources studies, political studies, among others.
Importance of the economy in society
The economy practically moves the world, and each country has and bases its laws on its own economy . By this we mean that they have different internal economies, which are those that revolve around their own production and consumption, mainly related to their cultures and population. And there is the external economy, this is about the agreements, relationships and exchanges between different countries.
No matter how stable a country is internally, it is necessary to maintain relations with other countries . Well, it is like a chain, if a country has a bad economy, it can surely affect the other countries with which it has commercial relations. These foreign relationships help us to know what to produce, how to produce it, and for whom to produce it. This is why they say that the economy allows the development of countries.
Political decisions in macroeconomics can significantly affect the development of an entire country, so specialists are needed to evaluate any situation that has to do with the country’s macroeconomy.
What is macroeconomics and microeconomics?
The branch of macroeconomics is responsible for studying the development of the economy on a large scale. This is accompanied by social and political studies that we can determine from a country, or region. However, many people say and argue that the macroeconomy is made up of the individual elements of the economy, that is, the microeconomy.
Microeconomics takes charge of medium-range processes and is always related to the country’s internal markets; regarding consumption, investment, saving and inflation. Well, this has to do with the development of medium-scale companies within the country that affects the economic and human development of a community and the specific population of a country.
It can also be deduced that macroeconomics is in charge of studying global economic circumstances . That is, large movements within the administration of a country that generally involve political decisions between internal business relationships and between other countries. And microeconomics is the one that analyzes and attends the behavior and needs between the economic relationships of consumers, the company and the product, separately.
