Economics Is the Study of How People Choose to Use Resources.

Topics: Economics, Economy, Utility Pages: 2 (639 words) Published: March 13, 2013
Economics is the study of how people choose to use resources. Resources include money, the time and talent people have available. Important choices involve how much time to devote to work, to school, and to leisure, how much to spend and how much to save, how to combine resources to produce goods and services, and how to vote and shape the level of taxes and the role of government. Often, people appear to use their resources to improve their well-being. Well-being includes the satisfaction people gain from the products and services they choose to consume, from their time spent in leisure and with family and community as well as in jobs, and the security and services provided by effective governments. Sometimes, however, people appear to use their resources in ways that don't improve their well-being. Economics is about making choices. We make all kinds of choices every day. How much should I spend on petrol? What's the best route to school? Where should we have lunch? What are the pros and cons of finishing college versus taking a job or inventing the next, best Internet startup? Which roommate should take care of washing the dishes? Can I get that dog as a pet? Should I get married, have children, and if so, when? Which politician should I vote for when they all claim they can improve the economy? What is "the economy," anyway? What if my personal or religious principles conflict with what people tell me is in my best economic interest?  Economics has erased the all the traditional mentalities about wealth we were born with, that wealth was based on luck and being religious. I came to understand that the factors that affect money and resources against the choices I made determined my state of financial standings. Economics strengthened my choice ‘power’ in order of my preference scale, it enabled me to utilise resources efficiently. Now am able to plan for the future based on the inflow and outflow of resources and the factors that affect it. I am also able to...
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