Economics

Economics is generally defined as the study of the optimal allocation of scarce resources, in order to satisfy the unlimited human wants. Among other matters, it deals with issues such as production, distribution and consumption, in order to maximize the people’s satisfaction.

In a small scale (Microeconomics), the discipline covers the individual, household and companies. A household concern will be the distribution of the family income in an attempt to satisfy the needs and wants of the family. A typical household concern is whether to prioritize the repair of a potentially damaged roof, the purchase of new electronic appliances or pay for the down payment of a new car.

In a larger scale, the field covers organizational activities such as the strategic planning and operations, when companies plan and implement policies that will minimize cost and maximize the employees’ compensation package as well as shareholder profits. Examples include the implementation of management programs such as Kaizen, TQM, and most recently, the use of robots as a cheap and more efficient substitute to human labor.

In a much larger scale (Macroeconomics), the discipline covers the aggregate (governments, entire economy). An example is the national budget wherein, governments compute for the level of expenditures (example: farm to market roads, hospitals, schools, etc..) that will be needed to finance a growing population. To be able to finance the planned spending, ways on how to raise the needed money (example: taxes, tariffs, etc.), is put into action.