With scientific methods. (Fontinelle, 2018) It seems like

                    With
each passing day, countless things and facts have changed prominently in this developing
world. For instances, the culture and traditions, technology, human behaviors,
ways of living, people’s values and preference. No matter how fast things have
changed, the daily basic needs of human being are always the same. Back in old
days where no advanced technology is available yet, the ancient human races survived
by growing plantations, hunting, fishing and living in the caves or shelters.
They consumed what they produced and then later, their own stock was exchanged
with other people for different item when money was not in place yet. This is
how the behavior or culture called “Trading” developed and later followed by the
word “Economy” which is related to each individual and the whole
community/country.

                        There
are many researchers or Economists worldwide who have been analyzing about
Economics. (association, 2018) Its definition can
vary in different ways. Most of their studies highlight the scarcity, how
people utilize resources and respond to incentives, or how and why people make
economic decisions. It often includes topics like finance and wealth although
it is not all about money. Economic is a wider discipline that helps people
understand historical trends, understand recent headlines, and make economic predictions
about upcoming years. Nature of Economics study is widely debated as Science or
Art. If science, whether positive or normative. (Seth, 2018)  Science
is a systematic and logical approach of knowledge and fact which progresses the
correlation-ship between causes and effects.

Economic is somewhat considered as Science because it has the
necessary features of not only collection of facts, but all the facts are
systematically collected, classified and analyzed by using systemic and scientific methods. (Fontinelle, 2018) It seems like it is simple to
differentiate between positive and normative economics but it is not an easy
case. Positive
economics study is based on objective analysis and facts while normative is judged
by subjective and value based.  (unknown, 2017) If it can be tested and proven (or disproven) without
carrying a value judgement, it is a positive statement. Normative economics is
based on personal values and opinions.

Economic
is also considered as Social Science or Art. Science
gives us principles of discipline however, art makes all the principles into
reality. Therefore, considering economic activities, it can also be claimed as
an art, because it gives guidance to the solutions of the economic problems and
it contains studying and prediction of human behaviors. Since
Economics is a driving concept of human interaction, studying it often reveals
why people and governments behave in certain ways. Therefore, depending on researches, we can conclude that
economics is neither a science nor an art only. But, it is a golden combination
of both. Science and art are complementary to each other. Hence, economics is
considered as both a science as well as Art.

(GIBSON, 2014)Generally, there are
two major economic disciplines, Microeconomics and Macroeconomics. Microeconomics study
focus on an individual, group or company level. Macroeconomics, on the other
hand, is the study of a national economy as a whole. (Pettinger, 2017) A few examples of Microeconomics issues
are demand and supply, wages, poverty. Macroeconomics focus the issues like
inflation, unemployment, GDP, economic growth and recessions. Economists utilize
different economics models for various purposes to relate the current economic
situation- causes and effects on the future economy and to justify policies at
political, organizational and households. (unknown, www.marketbusinessnews.com, unavailable)

The description of a model could be in
the form of figures, words, diagrams, or equations, depending on the audience
and the point of the model.  (francis, unavailable) One of the major
Economic concern is Scarcity, the shortage of a factor or product in market. The law of demand and supply is most commonly used
economic model, the classical
model. It states that while other factors remain unchanged, the demand
of a product or factor will increase when the price has decreased. The law of
supply explains, with other factors remain the same, an increase in price will cause
in an increase in the quantity of the product or service that is supplied to
the market. (francis J. , unavailable) Fig 1 recapitulates
the law of demand and supply.

 

     fig 1 

 

(www.intelligenteconomist.com, 2017) Due to higher price
and supply rate than demand, the price will drop until it reaches the equilibrium.
That is the point where there are no more changes and the demand equals to the
quantity supplied. This case is same for resources like raw materials, labor and
capital.

(unavailable, unknown)  Economists occasionally extricate between
‘positive’ and ‘normative’ economics. Positive economics is related to the
development and testing of positive statements that are objective and
verifiable. Normative statements derive from an opinion or a point of view. The
validity of normative statements can never be tested while positive, on the
contrary, can be tested, at least in theory, if not always in practice. Economic
systems are widely manipulated by policies, environmental and institutional
factors. (DANIEL HIRSCHMAN AND ELIZABETH POPP BERMAN, 2015) Economists possess the
most policy influence of any group of social scientists. In United States,
economics is the only social science that controls the major area of government
policy. Economists are somewhat important in public policy,
even though policymakers often ignore their advices. (Richards,
n.d.)

            Type of market systems can vary
depending on each country’s government policy. Free market system provides
perfect competition for buyers and sellers while Command system is the exact
opposite to it. US, UK, Singapore and some European countries has been using free
market system and it suits them well. (unknown, www.investopedia.com, unknown) In Command system, Government
controls the decision on production, selling and the price of the goods. It is
a crucial feature of any communist society like Cuba, North Korea and Old
Soviet Union. China applied command system for decades before transforming to Mixed
economic system which represent both socialism and capitalism.  Fig 2 (a) and 2(b)
highlight the major types of different market systems around the globe. Whether the society is developed or
underdeveloped, each market system has its own
advantages and disadvantages. Nowadays, there is no pure command nor pure free
market economy. It cannot be denied that Economy is the key driving force in
building the country. It depends on each government’s intellectual, decision
making and policy to choose wisely which type of Economic system suits the best
for the best benefit of its own country and people.

 

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