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.
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.
Economic Inequality undermines the productivity and morale of working people, and limit the number of people who could participate in the market and thus a country deprives itself of the contributions the lower section of its society could make to its economic development.
