How Does Economics Affect Today's Society?
Economics provides business professionals and government policymakers with tools they use to analyze the market and make decisions regarding the direction of the economy. On a macroeconomic level, government decision makers may determine that they need to put more money into the economy, perhaps because they feel that the economy is growing too slowly. If this is the case, as it was during the 1930s, government programs might be put into place in order to provide jobs and income for businesses and individuals. This increases the tax revenue stream and boosts the economy.
On a microeconomic level, companies analyze the supply and demand for their goods and services in order to determine how much to produce and what price to charge. Supply and demand are macroeconomic tools which seek to maximize profits to companies while maintaining a high level of consumer satisfaction by preventing shortages.
Of course, macroeconomic decisions have an effect on microeconomic factors; the reverse is also true. If the government raises taxes, that reduces the amount that businesses (and individuals) can spend on other items. This, in turn, affects the supply and demand curves for some goods and can affect the overall well-being of the economy.
Economics thus affects the most fundamental aspect of our daily existence by influencing the types of goods and services that are produced and the amount that is paid to receive those goods and services.
How Does Marketing Affect Today's Society?
Marketing comprises four primary areas: product (what is produced), place (where it is sold), promotion (how a product is advertised), and price (the amount charged for a product or service). By using market research, companies are able to determine what the demand is for a particular good or service; through careful promotional, distribution and pricing activities, companies can also help control deman...