Human Behavior

The field of economics is a social science. This means that economics has two important attributes:

· Economics studies human activities and constructions, and

· Economics uses the scientific method and empirical evidence to build its base of knowledge.

Economics is a semi-concrete social science. We must study human behavior and the choices we make. The assumption that people are rational indicates that the discipline focuses heavily on thinking of what would ideally happen in models. Additionally, we have concrete data—numbers—to work with. Formally, economics is the scientific study of the way in which humans make choices about production, consumption and wealth when faced with scarce resources.

The fact that economics is in several ways an abstract science means that various economists have differing interpretations of models and the way the world works. Furthermore, it is difficult to run experiments on social situations, especially on a scale as large as an entire nation. Therefore, economists rely on extensive mathematical tools, like econometrics, to analyze real world situations that have occurred and use that to forecast future situations.

What are Economic Indicators?

What are economic indicators and why are they important?

A: An economic indicator is simply any economic statistic, such as the unemployment rate, GDP, or the inflation rate, which indicate how well the economy is doing and how well the economy is going to do in the future. As shown in the article "How Markets Use Information To Set Prices" investors use all the information at their disposal to make decisions. If a set of economic indicators suggest that the economy is going to do better or worse in the future than they had previously expected, they may decide to change their investing strategy.

World Economic Indicators and Indices react to – or even foreshadow – the health of the global economy.

World economic indicators are specific indices and measures that indicate not only the overall health of the global economy, but also provide some insight into its future. Economic indicators can be found in many different forms.

Control questions:

1. What does "economics" mean?

2. What are other meanings of the economy?

3. What are three elements of economic indicator?

4. What are the classification of economic indicators?

5. What are the recorces of the economy?

6. Whata are the main three factores of production?

Сабақ 2.

Дата добавления: 2015-08-20