The History of Real Estate
History of Real Estate
E-Book: The History of Real Estate
Real Estate History
Real Estate History
Summary: A large set of interrelated activities involving exchange,
production, and consumption is known as an economy that will help to
determine how scarce any resources have been allocated. The needs of the
individuals who are operating and living within the economy are met by the
consumption, distribution, and production of services and goods, which is
also known as an economic system.
economy, supply and demand.
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Breaking Down Economics
The laws for supply and demand use these decisions above in order to total production and determine what prices will be. The price of items rises when the consumer demand increases for a specific good, as consumers are more willing to pay more, the price will rise as well. This will lead to production increasing in order to satisfy consumer demand as producers are driven by the profits they make. This typically results in a market economy balancing itself out naturally. When the prices for a sector of the industry rise from demand, the labor and money needed to fill that demand will shift into places as needed.
Central planning and some government intervention prevent there being any pure market economies. The United States can even be considered a mixed economy due to the slight differences. In order to fill in the gaps left from a market economy, social security benefits, regulations, and public education are provided by the government in order to create balance. This results in the term market economy referring to an economy that is more market-oriented in general.
Command-based economies, on the other hand, rely on a central political agent, which will control the distribution of goods and the price of the goods. Imbalances are common in this system as supply and demand are not able to naturally play out due to this system being centrally planned.
Economics is known as the study of economies as well as the factors that affect economies. There are two major aspects that the discipline of economics can be broken down to, which are macroeconomics and microeconomics.
The entire economy, focusing on the larger issues and decisions is what macroeconomics studies. The study of factors that affect the economy as a whole such as the inflation on the economy and the effects of rising prices. The GDP or gross domestic product, which is a representation of an economy’s total amount of services and goods produced, is also a part that macroeconomics studies. Finally, macroeconomics covers the changes in the national income and changes in unemployment. Basically, you could say that macroeconomics is studying the way that aggregate economy behaves.
As for microeconomics, this focuses on the firm’s and individual’s behavior in order to determine why they make the economic decisions that they do and how these decisions will affect the larger economic system. How individuals cooperate and coordinate with one another along with the reason that various goods have different values are also a part of microeconomic studies. The focus of microeconomics is often on economic tendencies, for example how changes in production are impacted by individual actions and choices.
Concept of Economy History
Adam Smith, an economist and Scottish philosopher wrote a famous book on economics in 1776 titled The Wealth of Nations. He as well as his contemporaries believed that economies developed into credit-based economies from the prehistoric bartering systems.
In the 19th century, both the growth of trade internationally and technology led to the creation of stronger ties for countries. This process is what accelerated into World War 2 as well as the Great Depression. Economies have seen a renewed globalization in the late 20th and the early 21st centuries.
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