Economics is considered to be the study of social behaviour so as to guide in the scare allocation of resources in order to fulfil the unlimited desires and the wants of the people in a particular society. It is only through economics that human individual’s tries to interact with the social structure process and thus it will highlight the questions relating to exchange and production of goods.
Two attributes of economics
There are two important attributes of economics when it is considered to be a social science. Economics studies the construction activities of the environment as well as the human activities along with different types of scarce resources. This is possible along with empirical evidence and scientific methods so as to build the basic knowledge in a better way. It is only through human interactions and processes, the decision making and the scientific constraints are studied in a better way and they are considered to be the foundation of economics. The dynamics and the complexities of human systems and motivations has led to the development of consumer theory and firm and thus this assists in the circular flow as well as interactions in the economy.
System of production and exchange of goods
The needs and desires of the individual has to be communicated in the best possible way and this can be addressed with the correct number of goods and services. Further, it is the society that provides incentives and attributes so as to allow individuals to participate in the production process of the goods and services. Moreover, the production process will be organised in such a way that the maximum possible quantities will be made available with the help of the production technologies and the existing resources. This will help to acquire the goods and services and thus there should be trading rules and agreements of exchange in order to assist in the growth and the development of the society in a better way. The basic features associated with the production process must be analysed in greater details and concept and thus it will be easier to understand the relationship in a clear and analytical way. There should be accomplishment of a single model and this will assist in maintaining the engineering relationships and the other associated aspects related to it. The production process should be such that the scarce resources are easily convertible into desired goods and services. This has given rise to the factors of production such as land, labor, capital and entrepreneurship. It will help to gather the best input choices that are available to the producers and the consumers.
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