Life basics: Economics

"Man is a normal animal, animated by sympathy for his fellow as well as regard for himself and his immediate family."

What is Economics and why do we need to study it?

Remember the other day when you were out at the mall to buy that item and it was out of stock. Or do you miss that product that has now become obsolete and no more manufactured?

The very existence of Humans is linked to “Want”. We want food, clothes, house, cars etc. But is there is never enough for everybody. Even in the developed countries human desires never ends. There is always a gap between what we want and what we are able to get

How to decrease this gap between what we want and what we are able get is the basic problem studied in Economics.

So any guesses how to narrow this gap?

Well we can have two solutions:

<> Either we want less

<> Or we get more.

To want less has not been very common to our society, we have always asked for more and that is how we developed…  Example like how we developed from carts to cars...

So does this study (economics) include every human wants? And does it provide complete solution? Well No.

As an Economy learner we are confined to things which are exchanged. Goods that can be exchanged are called Economic goods and that cannot be exchanged are called non-economic goods.

Next we’ll learn why we use money, what resources we use to transform raw material to finished goods and about the critical decision we need to take in an economic system.

Thanks for reading.

Please let me what you think about this article.

Regards,

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