The word “economics” comes from Greek, which means “ a person who manage a family”. In fact, economics has many common points as families.
A family faces many choices and decisions. It must decide what each member does in the family and what they can get as redound, such as: who cooks and who washes the clothes? To be brief, a family should consider the ability, efforts and desire of each member.
Like the family, a society faces many choices as well. A society must decide what jobs should be done and who should be chosen to do the job. Societies need some people to plant foodstuff, some people to make clothes and some to design computer softwares. Once societies distribute people and machines to do different kinds of jobs, they should also distribute their products and the time and qualities of their works.
Since the lack of resources, the management of the resources in the society is quite important. Scarcity indicates that the resources the society owns is limited. So a society is unable to produce all the products and labour force. As a family can’t give each member everything they want, a society is unlikely to give everyone the highest living standard they look forward.
Economics studies how the society manage its scarcity resources. In most societies, resources are not collocated by the only decision makers, but are collocated by thousands of families and firms.
There are 10 basic principles of economics according to N. Gregory Mankiw, the professor of Economics of Harvard University. And I choose 3 principles which are recognized as “how people make decisions” as a whole.
• People Face Tradeoffs
There is no free lunch in the world. In order to get a thing we like, we usually have to give up another thing. The decision making ask us to measure and accept or reject one or another aim.
For example, we consider that a student must decide how to distribute his most precious... [continues]
Cite This Essay
(2009, 11). Principles of Economics. StudyMode.com. Retrieved 11, 2009, from http://www.studymode.com/essays/Principles-Of-Economics-254712.html
"Principles of Economics" StudyMode.com. 11 2009. 2009. 11 2009 <http://www.studymode.com/essays/Principles-Of-Economics-254712.html>.
- MLA 7
"Principles of Economics." StudyMode.com. StudyMode.com, 11 2009. Web. 11 2009. <http://www.studymode.com/essays/Principles-Of-Economics-254712.html>.
"Principles of Economics." StudyMode.com. 11, 2009. Accessed 11, 2009. http://www.studymode.com/essays/Principles-Of-Economics-254712.html.