Do you think economic growth is slowing down all over the globe?
What is Economy?
Economy, in its simplest term, is the resources and wealth of a particular nation or area, primarily in phases of the creation and using of goods and services.
Moreover, an economy is the broad set of inter-related generation and consumption activities that help determine how limited resources are designated. In an economy, the generation and consumption of goods and services are utilized to meet the necessities of those residing and working within it.
Economics Explained
Several individuals assume that economics is only about money. Well, to some extent, this is valid. Economics has plenty to do with money: with how much money is given to people or employees, how much people spend: what it takes to purchase several things, how much money do businesses gain, how much money there is in total in the economy. But notwithstanding the considerable quantity of states in which our lives are involved with money, economics is more than just the study of money.
Anyone must understand that our wants or desires are implicitly endless, while the means or resources accessible to meet these wants are limited. When the community necessitates more of a product that can be produced to fulfill those wants, we have scarcity. Basically, if the demand for a specific product is high and that the supply is low, the price becomes higher. Consequently, we can deem of oil as having shifted scarcer in economic terms when its price continuously hikes up. Note that it takes millions of years to produce oil under particular stress and temperature circumstances.
How Important is Economics?
Economics can contribute to reducing the unemployment rate, and then it can cause a notable improvement to economic progress.
Economics is essential for various sectors of the community. It can further promote living standards and proffer the community a better place to live in. Economics is like science, in which it can be utilized to raise living standards and make things worse better. It somewhat depends on the preferences of the community and what we suppose the most influential.
What is the Central Dilemma of Economics?
The central dilemma of economics is scarcity - the view that wants (demand) is higher than the resources we have. Thus, the economy stands options on:
What to produce? - Is it worth spending more on things related to health or to spend more on things needed by most of the people?
How to produce? - Should we devise it for business forces or execute administration commands with this?
For whom to produce? - How should we allocate supplies? Should we put more income tax on the most prosperous in the community?
Economic Growth
One can simply describe economic growth as the rise of the market value of an economy's goods and services or the wealth of a nation itself over time. Growth can best be expressed as a practice of transmutation. Whether one considers an economy that is now advanced and industrialized or an economy at a more immediate step of improvement, one perceives that the manner of growth is irregular and unstable.
How the Pandemic affected the Global Economy?
The global economy's damage caused by the COVID-19 pandemic is driven mainly by a drop in demand. There are no customers to acquire the goods and services accessible in the global economy. This change can be clearly observed in heavily affected commerce, such as travel and tourism, which cannot be denied that is affected greatly.
But, do not lose hope. There will be a time that we will rise up again, and that the global economy will be once again see rising dramatically.
Now, do you think or believe that economic growth is slowing down all over the world? Comment section is waving at you!
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