WHAT IS ECONOMICS?
Reading Time: 3 minutes Economics is the study of how people use resources to meet their needs and wants. It involves making choices and understanding the consequences of those choices. With limited resources and unlimited wants, we must make decisions about how to use our money, time, and labor most effectively.
Key concepts in economics include scarcity, opportunity cost, and supply and demand. Scarcity means resources are limited, leading to choices about what to prioritize. Opportunity cost is what you sacrifice when choosing one option over another. Supply and demand determine prices based on how much of a good is available and how much people want it.
Understanding these principles helps us make better financial decisions and comprehend broader economic issues. Economics is not just theory; it affects our daily lives, from personal finance to government policies impacting the economy.
