Economics is a branch of social science itself. It tries to explain the factors that are responsible for the determination of production, distribution, and consumption of goods and services. Economics analysis can be applied to many other fields including business, society, and healthcare. It is the main reason of economics being one of the most widely pursued areas among the students.

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What is the importance of the concept of economics?

To understand the subject, it is important and necessary to study the subject with the intention of learning and interest. It is quite difficult for the students to develop the understanding of the subject without the interest in it.If the fundamentals are clear, then handing the assignment would not be a challenging task. Here are some important concepts of economics:

  • The concept of demand and supply

We know that a demand gives rise to the production and changes to the rate of supply. The higher the demand, the higher is the supply and consequently the higher prices. It is an important economic parameter to establish the relationship between different parameters, such as production, inflation, and cost etc.

  • Concept of inflation

It is the rate at which things get costlier every year. For instance, if the rate of the inflation is 10%, it will imply on the things that are getting expensive with 10% every year. It is important to check on inflation to balance the economy of the country.

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