Assignment No.

Submitted By: Iqra Tahir Reg No: CIIT/fa11-beco-033/LHR

Submitted To: Sir Tuseef Tahir Topic: Application Of Computer in Economics

Institute Of Information Technology Lahore

What Does Economics Mean?

A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants. Economics can generally be broken down into: macroeconomics, which concentrates on the behavior of the aggregate economy; and microeconomics, which focuses on individual consumers. Economics is often referred to as "the dismal science"

Computer science:

The field of computer hardware and software . It includes systems analysis & design, application and system software design, programming and datacenter operations. For young students, the emphasis is typically on learning a programming language or running a computer with little attention to the study of information and its uses. In order to better deal with business information requirements, students must also be introduced to data administration and database concepts.

Application of computer science in economics :

Computer scientists have spent decades developing techniques for answering a single question: How long does a given calculation take to perform. Computers in economics have several advantages. One being that it allows people to make business models and take several factors into account, such as another company's revenue compared to their own. Today's financial markets experience larger swings partly because of program trading, where large stockholders use computers to decide when to buy or sell stock in large quantities. When the specified conditions are met and the programs trigger, the large transactions can cause other programs to trigger, leading to a spiral of selling and buying that produces the large swings in the market. On the other hand, computer trading has also allowed more people to participate in the stock market through low-cost Internet stock trading sites. In terms of ecommerce, there has been a meteoric rise in online business, a phenomenon that is termed e-commerce. Many consumers now pay their bills entirely online. Online shopping at sites like Amazon.com has become routine for many consumers. It did not take many years for online auctions at sites such as eBay to become enormously popular. Computer destroy some jobs(for example type writer clerk) but creates many more(jobs to create computers/software developers/typing clerk.In addition, computer aid other economic activities to make it more efficient (use of robotic computer in manufacturing and computer as data managements) as well as open up new markets (on internet for once.) Finally, the efficiency of communication Computer brings mean that the globalization process is fastened (e.g. call centers in India) which creates greater prosperity and lifts many out of poverty.

Computers can process vast amounts of information quickly, they are a natural match for the field of economics, which studies the production, distribution, and consumption of goods and services. Economists rely heavily on computers to help them explain and forecast economic behavior.

Analyzing complex problems

Economists use advanced computational methods to analyze complex problems. Those problems can involve hundreds of variables, thousands of data points and a variety of statistical techniques.

Online trading and commerce

Without personal computers and the Internet, relatively few people would have immediate access to information about the stock market and consumer goods. However, with the development of computers and the relevant programs, the average person can now become a day trader, an online merchandiser or simply an avid armchair consumer. All of those actions, especially those involving the stock market, strongly influence the economy. Economists not only participate in those activities but also study them. In that sense, computers have significantly altered the field of economics. For instance, certain computer programs can trigger larger amounts of stock buying and selling, which can, in turn, affect the entire stock market.

Data representation and visual aids

Economics can be a dry and confusing science that is not always easy to interpret or understand. Even if economists understand the complex data they have analyzed, the data are not of much use unless the economists can present it in an interesting and engaging manner at a meeting, at a conference, or in publication. Fortunately, computers can be programmed to display complex data in graphs, charts and other visual aids. During the past two decades, computer and computer software are providing for economics. And economist what the side of the mushroom provided for Alice. What linear accelerated for high energy physicists .the exploses groth of computer uses in economics.

Conclusion
To summarize, since the software crisis of the 1970s the industry has gone through far-reaching technical, economic and organizational changes. Work organization has evolved from the Tayloristic approach of the 1970s to a rather more flexible management style in the 1980s. However these changes have not been able to counter the continuing desynchronization of progress in hardware and software. The occupational structures in the industry remain fluid. The sexual division of labour in computing jobs does not seem to have crystallized, although women do tend to be clustered at the base of the hierarchic pyramid. Although they face difficulties in building their career paths, there seems to be room for upward mobility into more skilled occupations and development work. On the other hand, even in firms studied, which emphasize job stability, a trend towards diversifying work relations can already be foreseen. The growth in the outsourcing of less skilled activities, which are being turned into casual work, is likely to seriously jeopardize this window of career advancement for women.

With regard to software development work, at least in the short term, women may continue to have only a minor share of total employment. There are indications of gender polarization of the work, with men tending to be clustered closer to the machinery, where technical expertise associated with mainframes has been assigned a high social prestige. Small processor platforms (e.g. microcomputers, workstations) have so far had lower organizational prestige. These, and activities involving close interaction with users, seem to offer more conducive environments for women. Since the epoch of the powerful centralized mainframes is passing, and software is moving further from the machinery towards the modelling of problem-solving in close contact with users, women may well become core agents in the technical and social changes necessary for the further diffusion of information technologies. Whether this will have a significant effect on the overall profile of women's employment in developing countries will depend also on factors affecting the viability of indigenous software activities and, increasingly, deploying an internationally competitive software and computer services sector.