The study of economics is helpful in several ways . Some of these I
will comment on . First of all , technology levels affect a societies economy ,
so by learning what products are produced and how they are produced , you can
see how technologically advanced a society is . By examining where the produced
goods are sent/used you can get a better idea of what type of government the
society is run by . By studying an economy and seeing how the economy uses
resources , you can learn what resources the society controls and which ones the
society needs . Tied in with this factor of resources you can get an idea of
which countries have leverage over other countries .
An economist how a society or government meets the needs and wants of
the populace , either through production or commerce . Economists see the world
as a) profitable b) unprofitable c) and they see opportunity costs . By
viewing the world in such a manner they are able to help in the decision making
involved with money and industry . They can help to save money , resources ,
labor, and time .
Microeconomics is the study of an overall economy . In studying
microeconomics you study a wider range of services , productions , exchanges .
While not as discriminate as macroeconomics , you can get a broader picture and
grasp the basic concepts of an economy .
Macroeconomics studies the study a single aspect of an economy , lets say the
mining of coal . You don't research the delivery , the ‘market' ; all you study
is the actual mining process . While this may be more limited in scale , you can
learn more about that specific process . You don't see the whole picture but you
can find the specifics on that subject .
Personally I don't think that the physiocrats theory would work . I
think that if we tried to follow there theory and have the government abstain
from interference , many of the smaller businesses would quickly be closed down .
I think that a great many monopolies would be created and we would have the ‘
railroad barons' problem that we had in the 20th century . I feel that the
government is hindering at many times , and still they seem to be helpful in
some areas .
The business that I chose to depict was the custodial division at Chico
State University . Both of my parents work there so I chose this area of
business . The factors of production pertaining to this field of work would
include people/labor , cleaning liquids ( such as disinfectants and Windex ) ,
and dirty rooms (joke) .
For the land I would have to put down electricity , water , large amount
of goods manufactured using plastics which in turn uses oil . As for the capital
of the business I will say that the cleaning machines , and large supplies of
cleaning materials would fill this category .
The entrepreneurship of the custodial business is the tricky part . I
guess that you could say that the custodians risk there social lives ( because
they work graveyard shifts ) in exchange for making a decent salary . As in the
case of my parents , it paid off .
The way that I see it , our largest problem has to do with the natural
resources . People will always want and need things , but if we do not limit
and reserve the resources that we have , we are not always going to have our
resources . Demands cannot be met when there is nothing to meet them with. You
can't artificially make everything . You need to start somewhere .