Intro to Economics

Updated: Jan 5

By: Sumay McPhail

Today I will be talking about economics! Economics is the study of people and choices, this is obviously very important, but what are the implications? And how could economics change how you see the world? We will be touching on three main points: What is economics, what the two most important assumptions of economics are, and where economics is used. Hope you enjoy reading!

What is economics? Some of you may be unclear about what economics is. First off, economics is not the study of how to make money. Economics can help you make better choices with money. But generally, economics is the study of how people can make rational choices. Every decision we make is a choice so economics can help us in so many different ways! Economics helps individuals and governments that could affect millions of people. Every second of the day you are using economics. You made a choice to do whatever you are doing at any given moment. This means that you believe whatever you are doing is more valuable than all the other things you could do. Or you believe that the benefits of whatever you are doing outweigh the costs.

What are the two most important assumptions of economics? Two of the most important assumptions used in economics are these: People have unlimited wants, and we don’t have unlimited resources. People use economics to get the most out of our limited resources. There would not be any economics if there were unlimited resources because then we wouldn’t have to make choices. And remember that economics is the study of making rational choices. With scarcity, we must make a choice.

Where is economics used? The government uses economics to decide which choices to make regarding public policy and spending taxes. By weighing the costs and the benefits and the impact choices, the government can try to improve the quality of life of its citizens. This is very helpful when it comes to keeping an entire country strong and stable. For example...Should we close down schools to slow the spread of a virus? What are the costs? What are the benefits? While economics is very obviously used in places, economics can be used everywhere!

Thank you for reading about economics! Economics is something essential in almost all aspects of our lives, since it is about the study of people and choices! Also, economics aren’t only about other people and their choices, but also about ourselves and our choices. Not only can economics important in day to day life, but can also help us understand the world!

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