Describing The Nature Of Economics, Praxelogy And The General Theory Of Human Action

Answer :

Describing the nature of economics, praxelogy and the general theory of human action

Economics is the study of the social science and the human being is the part of this society so apparently the economics can be identified as the study of the human nature. The microeconomics basically describe the nature of an individual it may be the consumer a human being or the firm. In this case, the consumer behavior states the nature of the consumer and describes their behavior of them in every economical situation (Lowry et al. 2015). The market demand can be formed on the basis of the nature of the human behavior they have every opposite reaction based on the action of the market. On the basis of the economical theory, the demand curve for any goods and services is downward slopping because of the opposite reaction of the consumer. If the price of any goods and services will increase, the consumer will reduce their demand. On the other hand, if the price of the goods and services will reduce then the demand of the goods and services will be increased. Therefore, it is clear that, the human nature work in opposite direction against the market action. Therefore, it can be said that it is a praxelogy of economics and based on this theory lots of model has been developed in order to understand the different aspects of economics. Though there is some exception of this theory because in some extent the demand curve may be the upward slopping, which is different from the general case. 

According to the economists it has been stated that, as a human being a consumer may have numerous want but the resources are limited so the proper allocation of resources is required otherwise the human want will not be satisfied and they consumer cannot be able to maximize their utility (Jevons, 2013). According to the economist the objective of the consumer is maximize the utility subject to the budget constraints. Therefore, the economics can identified as the study of the human action because only economics is subject which has the capacity to explain how the consumer can be able to maximize their utility by using the scarce and limited resources (Wadman, 2016). With the help of the economics, the consumer can learn the alternative use of the scarce means in order to achieve the maximum utility. In addition to that, the economics helps the consumer to take optimum decisions regarding the consumptions and allocation of income to different goods and services within a specific time period. As a human being when the consumer will apply the principle of scarcity then they can realize time is the most scarce resource and it is also non renewable resource. In this regard it can be said that, the consumer cannot be able to increase their life by one seconds by spending their entire wealth. Therefore, the consumers must try to make best possible use of the time. It helps the consumer to learn the efficiency, optimum utilization, no wastage rationality and decision making by cost benefit analysis.

Based on the study of economics the consumer can be able to maximize their utility within specific time period. In this case, by adopting different tools the consumer can be able to earn maximum utility in minimum budget. In this case, indifference curve approach is one of the important aspects of consumer behavior (Solomon, Russell-Bennett & Previte, 2013). With the help of indifference curve the consumer can calculate their cardinally and by achieving the higher indifference curve they can be able to earn higher utility. With the help of the income effect, the consumer can be able to stay on the same indifference curve and in this case, the increment in the price of the goods will not affect the situation of the consumers. With the help of the concept of marginal utility, the consumer will be able to reach at the maximum point of the utility and after this; the consumer will not try to increase their consumption because after this the utility will fall. Therefore, it can be said that, there is no economic concept it is basically human nature that can be interpreted with the help of the economic praxelogy or the theory. On the basis of the study of economics the human being can be able to learn the cost benefit analysis for which they can be able to earn higher utility (Nicholson & Snyder, 2014). In addition to that, the consumer can be able to learn the process ordering to their needs and on the basis of the ordering they will satisfy their wants. Therefore, the consumption of goods and services is the basic nature of the human being and they learn the technology from the study of the economics how this consumption can be more sophisticated and how the consumer can be able to consume more goods and services within limited period of time in a lower budget (Rader, 2014).

Macroeconomics also states the human nature but it does not describe nature individually it describe the human nature collectively. In case of macroeconomics, the condition of a country will be discussed and it also explain the process how a country can be able to consume more goods within specific period of time. In addition to that, the different policy will also be discussed here in order to increase the consumption level of the country. On the basis of the study of macroeconomics it is clear that without the consumption the country cannot be able to achieve the growth. By increasing, the consumption that is basic nature of human being a country can be able to increase the investment, production and employment for which the country will be able to achieve the long term sustainable growth and development.

Therefore the nature of economics is to describe the human activity and scientifically provide the evidence of each human action and on the basis of the praxelogy of the economics can be formed.