Economics in My Life

Topics: Supply and demand, Economics, Market Pages: 3 (823 words) Published: December 12, 2012
Economics In My Life|
Darrell A. Cooper|
Stevens Henager College|
Ecn 220|


Principles of economics
The economy comes from the Greek word oikonomos, which means “one who manages a household.” Economics- is the study of how society manages its scarce resources. Like a household, a society faces many decisions. A society must find some way to decide what jobs will be done and who will do them. It needs some people to grow food, other people to make clothing, and still others to design computer software. Once society has allocated people (as well as land, buildings, and machines) to various jobs, it must also allocate the output of goods and services they produce. What it means to me is to better the economy, produce goods, gas prices, demands, debt and overseas supply raise or lower price according to agreement and saves money at the gas pumps.

The ten Principles of Economics is
1.) People Face Trade-offs- gives money for an item you want, “There is no such thing as a free lunch.” 2.) The Cost of Something is What You Give Up to Get it – Because people face trade-offs, making decisions requires the costs and benefits of alternative courses of action. 3.) Rational people think at the Margin-people who systematically and purposefully do the best they can to achieve their objectives. 4.) People Respond to Incentives-give up money for items or getting free things at a bank to open an account is an incentive. 5.) Trade Can Make Everyone Better Off-you can trade something that you do not need for something that your friend has that you want. 6.) Markets Are Usually a Good Way to Organize Economics Activity-an economy that allocates resources through the decentralize decisions of many firms and households as they interact in markets for goods and services. 7.) Governments Can Sometimes Improve Market Outcomes-If the invisible hand of the market is so great, why do we need government? One reason we...
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