Page 6 - BOOK CONCEPTS OF ECONOMIC SCIENCE BY RIZKI RAMADHAN

D. Division of Economics

1. DESCRIPTIVE ECONOMICS

Descriptive economics is economic analysis that

describes the actual economic situation based on facts

in the economy.

2. THEORETICAL ECONOMICS

Theoretical economics is economics that attempts to

explain and formulate meaning, explain cause and

effect relationships, explain how the economic system

works in people's lives.

E. Economics Principlesi

Actions carried out by humans to maximize

satisfaction or profit are called economic actions. The

economic actions carried out by humans are based on

what is called the economic principle, namely "With the

smallest possible sacrifice to obtain certain results or at

certain costs to obtain the largest possible results".

By understanding economic principles, a person

can understand many events that occur around him.

Apart from that, with economic principles a person can

also make decisions that suit his or her circumstances.

Economic principles are consequences (things

that cannot be avoided) that arise from the

contradiction between limited resources and unlimited

human desires.

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