Importance of Economics in Student Life

Topics: Want, Need, Economics terminology Pages: 2 (577 words) Published: March 8, 2013

As a student, it is important for me to embark the study of economics due to its strong relation in our daily lives. Economics help students to understand more about the modern world in making the decision for the future. It also helps us to understand the problems caused by the limited resources and helps students, as consumers to make rational choices when making decisions. Besides that, students are able to understand the function and role of banks and financial institutions, moreover able to understand the information related to the economics.

Since most of our daily routines revolved around economics, it helps the students to apply the basic and concepts of economics as consumers.

One of the most basic concepts in our daily life is wants/needs. Basically, every human has different needs and wants. It is impossible to please every need and wants due to the limited resource or known as scarce. E.g: As a human, the basic needs in one’s life are food, water and home.

Scarcity is as well another basic concept of economics, known as the limited resource of unlimited wants, due to the incapability to provide one’s need they desired for. E.g: As a student, I have RM 50 in my pocket however I will need to buy a book worth RM 100, thus the amount of money that I have is insufficient for me to buy the book.

Another concept is the scale of preference. The unlimited wants of a human being is always arranged in order of one’s relative importance. The most important one will definitely come up as number one while the list goes on. E.g: As a student, I will have a daily list to do and everything in the list to seems to be important to me. Thus, I need to do the most important thing first in order to settle the rest.

A choice is another basic concept of economics, defined as the decision that we made. A choice happens as a result of scarcity, due to the impossibility to produce...
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