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Subject: Economics

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1 year ago

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What is Economics? Student’s Name University Name What is Economics? Amazingly, every trade and profession has its own basic concepts, which are assumed that people naturally understand what the terms mean. In as much as these concepts are frequently used in the press and casual talks, not everyone understands the meanings sometimes. The meaning of economics is among the basic concepts causing problems for people. What usually come into the minds of individuals when economics is mentioned is finance and the unending needs. In simple terms, economics is a broad discipline involved in the allocation of available resources in an attempt to satisfy personal or societal needs, which by contrast, are unlimited and numerous. Gregory Mankiw argues that “Economics is the study of how society manages its scarce resources” (Mankiw, 2014). From the author’s definition, management or allocation of resources is the critical element of economics. Certainly, the major problems are the fact that resources are limited while the needs are unlimited. Hence, the competition for attention among needs causes challenges. Therefore, whether it is on a personal level or societal level, proper appropriation of the same limited resources is unavoidable. In that case, balancing between the available resources and the needs is what is referred to as economics. Similarly, the concept of making choices is essential for understanding or defining the term economics. For instance, making a decision on expenditure and allocating domestic duties are forms of choices, which depend upon the available resources. An individual can either choose to buy a car and forgo going on holiday because of the limited resources. That is allocation and management of resources at the same time, and it relates to economics. In short, economics is a broad discipline concerned about the management of the limited resources in a bid to satisfy the numerous needs. Economics happens at both personal and societal level. The key concepts to note while defining economics is the management of unlimited resources, competing needs, and making choices. References Mankiw, N. G. (2014). Principles of macroeconomics. Cengage Learning.

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