What Is Economics?

3 Pages 758 Words

Economics is simply the study of choice. More precisely, economics is the studyof how individuals and society choose to use limited resources in an effort to satisfypeople’s unlimited wants.1 There are different kinds of economies like capitalist conomies, market economies and socialist economies. America’s economy is mainly a combination of a capitalist economy and a market economy. In dealing with a market economy, its every man for himself. This is what makes America so great: Freedom.

Some of the characteristics of the American economy are private ownership, the price system, competition, monopoly and government intervention. A few of the major downsides of the American economy are inflation and unemployment.

Before anymore is said about the American economy, I will elaborate more on what economics really is. Economics asks what goods are produced, how these goods are produced, and for whom they are produced. It analyzes movements in the overall
economy. It also is the study of commerce among nations and is the science of choice, explaining how people choose to use scarce or limited productive resources. And, finally, economics is the study of money, banking, capital and wealth.

As mentioned before, the American economy is partly based on capitalism. Capitalism is a social system based on the recognition of individual (human) rights, including property rights, in which all property is privately owned.The price system
is the coordination and communication of system of capitalism. It communicates messages between buyers and sellers and between employers and employees. Also,
capitalism promotes private ownership, which is an important aspect of the American economy.

Capitalism has attracted mix reviews from economists. Some of its supporters say that you have to look no further than the current situation of America’s position as the strongest economy in the world to see how successful tha...