Schools and Education: Economy

According Alferd W. Stoner and Douglas C. Hague Economics can be divided into three sections as follows :

A. Descriptiv Economics (Descriptive Economics)

Economics is to collect all the important facts about the subject (topic) which are listed, such as agricultural system in Bali, or the cotton industry in India.

B. Economic Theory (Theory or Theory of Economic sciences Economics)

Economics provides a simplified explanation of how an economic system works and is an important characteristic of the system. Economics of science theory is divided into micro and macro economics.

C. Applied Economics (Applied Economics)

Economics is trying to use the basic framework of the general and economic analysis provided by the theory to explain the causes and significance of events reported by the economists descriptive.

Micro and Macro Economics

Economics is divided into two broad subfields, namely micro-economics (Microeconomics) and macroeconomics (Macroeconomics). Micro-economics is the study of how households and firms make decisions and how they interact in specific markets. Microeconomics to discuss for example how a household allocates its income to buy goods and services in order to meet the needs. Economics experts discuss the effect of micro usually caused by a policy of the company or individual households. For example, the effects of the policy of compulsory education on labor income.

Macro Economics is the study of the phenomenon or the phenomenon of the economy at large. Macroeconomics to discuss the overall economy. Discusses the macroeconomic production as a whole, is no longer a company such as micro-economics. In discussing the overall economy, focusing on macroeconomics and economic policy variables that influence it. For example, discusses the macroeconomic level of national unemployment, national income levels, and the national inflation rate.

Differences in Macroeconomic Microeconomics

Of understanding and examples given above we can conclude the difference between micro economics macro economics.

The differences are as follows :

1. Microeconomic discuss how households and firms make decisions, while talking about not only the macro-economic households and firms, but the economy as a whole.

2. Microeconomics is a part of various macroeconomic variables like consumption, savings, and income. This means that if the microeconomic discuss a particular company earnings, macroeconomic even discuss the company's national income in the economy.

3. Microeconomics deals with the flow of goods and services from companies or manufacturers to households or consumers, the flow of factors of production from households to firms and pricing of goods and services, both as a production factor as well as consumer goods.

If further review, the real focus of microeconomics is the corporate sector, namely how the company makes a profit in producing goods and services. Profit is one of the objectives of the company. Business makes a profit in the company's need to know in advance what items will be produced, in what amounts and sold at what price.

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[Source :Science Education

Adam Smith Biography

Adam Smit son of a civil servant, born in Kirkcaldy, near Edinburgh. Adam Smit is the father of classical flow. In his famous book "The Wealth of Nation's (1776, coinciding with the founding of the United States) Smit explained what had always been the principal economic problem, namely how to increase the wealth / prosperity of a country and how wealth is distributed.

According to Smit, the only source of wealth of a country is the production. That is, the more production will be more rich / prosperous a country. Production is more and more can be created through labor specialization can increase production. A concept that transcends time.
"Source: World Economic Fifty-thinker"

The Basic Economic Problems can be divided into:

A. Basic Economic Problems In Classical Flow
According to the theory of classical economics, public economics subject matter can be classified to three important issues, namely:
1. Production problems
2. Distribution problems
3. consumption problem

B. According to the Basic Economic Problems of Modern Flow.
Modern economists agree that the resources available, there are at least three main problems facing any economy and should be solved by the people as economic subjects.
1. Goods and services what to produce and how much? (what and how much?)
2. Which way as to produce? (How?)

3. For Whom the Goods and Services Produced? (for whom?)