Economics Essay

990 WordsMay 4, 20124 Pages
Economics Economics is something that has been around from the beginning of an established government, but economics has a meaning of its own. Economics is the study of how people choose to use resources in their environment. Resources like the time and talent people have available, the land, buildings, equipment, and other tools on hand, and the knowledge of how to combine them to create useful products and services. Economics is also about what all the country should produce. Knowing what is in high demand and how much of something that needs to be produced and for what type of situations or people that would have the most use out of the product which helps sell the things produced to the consumer. When the economy is good it also helps the transfer of wealth because it boosts the economy when things are being produced and consumed at higher rates. Things that involve economics can be anything from someone who doesn’t have a home and wants a new one or someone who has an old car and wants another one. People who study economics help the corporations understand how much of something to produce and what the market is for that product. Scarcity is the balance between the limited resources and the unlimited resources. Limited resources that the government has to be careful not to over produce would be natural resources that cannot be renewed. Unlimited resources include the money, time, and skill needed to produce the certain types of things needed at that time. Scarcity causes economies to make decisions over how to distribute their resources to the public and if the public can even buy some of the things because if the country is running low on a resources the price will rise or the government may refuse to sell the product unless it is needed in an emergency. Economics, in turn, aims to study why we make these decisions and how we use our resources

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