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Archive of posts published in the category: Understanding Economics

Economics And Finance, Are They Same?


The sole aim of the study is to identify the similarities and differences between Economics and Finance. Economics is believed to be the footing for Finance. It comprises many broader aspects like production, consumption and distribution of goods, inflation, recession, supply and demand. There are studies for government income and expenditure, the impact of business proposals and not the least the favourite index for investors to know the companies and markets. The financial segment is tailored with programmes including prices, interest rates, capital allocation, future cash flows, and much more to the business stake holders.

finance1It is a common scenario that both economics and finance are categorised as separate disciplines. However, it is a fact that Economics offshoot Finance. They lie together in a domain and influence each other to attain stability. Investors do not segregate them because modern economics is no more confined to general education, but towards significant calculations and heavily quantifiable stream in practice. Economics is the powerful resource for analysing the fluctuating markets, tax regulation and policies of government etc to reach perfect conclusions in decision making. In the corporate-sector, Economics are the key to monitor the GDP, deficit and inflation in the market, thereby preventing the lodge of investments into the growing sector.

hand drawing graph chart and business strategy

hand drawing graph chart and business strategy

Finance, on the other hand, outweigh economics and converges on cost, money flows, value and risk management. Finance managers are more proficient with capitals, evaluation of risk and kick around the hurdles of business proposals. Finance finds its abundant applications in reckoning values, judgment of financial tools, estimation of fair value to name a few. Apart from that applied finance has a lot of stock-pricing models and bonds which give outstanding results when compared to the theoretical explanations of Economics.

In a nutshell, both have specific roles to play in today’s unpredictable market scenes whilst the drawbacks they converge to a certain extend and cannot be separated as two.

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Is Economics An Easy Learning?


Economics prevails in almost every aspect of our day to day life. The overall understandings of the world we live in, particularly the volatility of global markets probe us to learn this independently. It is, in fact, a good idea to figure out the innermost workings and estimation of price and goods that we use daily. Learning Economics do not require the comprehensive knowledge of them although your specialization lies beyond the subject. A little dedication and interest towards the real-life applications would change the scene dramatically.

eco1Today, various methods are implemented to master economics without stepping back to schools or colleges. The most convenient tool is the lectures on Youtube, which are pre-recorded set of videos that can be accessed either by a subscription charge or freely. Although there are no rooms for clarification and questioners, rewinding the videos repeats the lectures, which solves most of the issues. Studying with textbooks adds a bit more to the learning, solving mathematical calculations and verifying answers. This is a boon to most e-learners who do not find reserved time to be physically present in theory halls of the University.

ecoThere are numerous MOOC’s Massive Open Online Courses available for the passionate economics learners. These provide an opportunity to post queries which get answered within a stipulated time. The major benefit of these courses are, you can select the term, whether it is short or long offered by Universities, and do this as part-time or full-time. You may also drop in between or continue later according to your convenience.

Apart from that, learning from the books and journals gives precise knowledge and good basic understanding of the subject. The only effort involved is to find time for reading them and assimilating the contents. Hope this article will help you develop a life-long passion for this interesting subject.

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More About The Father Of Economics


The renowned economist Adam Smith is considered to be the father of modern economics. He was the scholar and has many books to his credit. His first book was “the theory of modern sentiments” he indexed the free market regulations and competition. Among all his write-ups, the one that made his place rigid in the history is “An Inquiry into the Nature and Causes of the Wealth of Nations” where he mentioned about the building up of Nation’s wealth. Smith completed his schoolings from the University of Glasgow and then his graduation studies from Balliol College at Oxford University.

economyThe book “Theory of Moral Sentiments” discussed many ideas on charity and human ethics which was a good piece for the critics to spawn. It broadly asserts the concept of morality and sympathy, and its effect on communication. Other than scholastic research on economics, this book contradicts the economic views of the public in the matter of work and betterment. The master work of this Scottish scholar, “The Wealth of Nations” accounts on the industrial sector of Europe which is the first book designed for simplifying the ideas so that an average reader could imbibe, and now referred to as the classical economics.

Smit’s books are responsible for minimizing the government interruption and levying taxes in free markets. These ideas emulate the concept of each person and result would be the best. Any entrepreneur who could meet the needs of their customers is rewarded financially. Although they are involved in the money-making chain, they do provide the necessities of the people. Likewise, when the nation is working productively, they are gaining themselves and tackle their financial needs.

Hence Smith took a major place in the field of Economics and his ideas were widely accepted and learned throughout the colleges and Universities.