What Economics Is Essay

1357 words - 6 pages

Economics is a science which difficult to define. If some people are asked about what their definition of economics, they will have some difficulty in defining the subject. They will give these following opinions, “It is study of money,” “It has to do with business, profit and loss, and so forth,” “It is about how society chooses to distribute wealth,” or “It is the search for mathematical pattern that describe the movement of prices,” (Callahan, 2004). Israel Kirzner points out that even among professional economists, there are “a series of formulations of the economic point of view that are astounding in their variety.” (Kirzner, 1966, as cited in Callahan, 2004).
The word economy comes ...view middle of the document...

Similar to definition by Gans et al. (2009), Mises (1962 as cited in Callahan, 2004) also emphasises his definition on human action. Human action is purposeful behavior to reach goals (Mises, 1962, as cited in Callahan, 2004).
In my point of view, economics is a study of human behavior, which can be individuals, groups, or organisations, when they face the resources scarcity. That definition is the basic definition of economics. If we see economics nowadays, it is so much more complicated, it include individuals to even every country worldwide.
Human behavior in economics is based on scarcity. For example, if one does not have food to eat, he will find a way to get the food. In order to get the food, he needs money to purchase it. To have the money, he have to work. So, the scarcity here is the need of food and the behavior is work to get the money, which is used to purchase the food.
Besides working to get the money, others can plant some crops then sell it in a higher price. We can see here that each person will has different behavior or action to the scarcity. These different behaviors create some different positions in the economy system. The most basic ones are producers and consumers. Producers are ones who produce products needed by others, while consumers are ones who buy the products needed from producers. Each person has to act as both producer and consumer. No one can only produce without consume, because each of us has our own needs that have to be fulfilled by other producers. In addition, no one can only consume without being a producer. To consume, it needs money which can be owned from working or selling goods (or being a producer).
Economics is a complicated science because each economy agent (can be individuals, group, or organisation) behaves in different way in facing resources scarcity. They also have different needs and different taste. These aspects create many concepts in economics, such as demand and supply, price elasticity, welfare, and so on. All of these concepts are divided into two big classifications, which are micro economics and macroeconomics.
Economics is important in my life. I have some goals in my life which I want to pursue. Some of them are having a happy family and living prosperously. In order to reach those goals, I need a quite huge amount of money, because a family definitely needs money to fulfill their daily needs to survive and be happy. And to fulfill those needs, money is needed. How to get the money? The understanding of economics is the answer to that question.
I can examine the importance of economics by positioning myself as a consumer and producer. On one hand, being a consumer, understanding economics can help me to use money wisely. For example, by using the demand and supply concept, I know...

Other Essays Like What Economics Is

Economics Essay

787 words - 4 pages 7303AFE Economics Microeconomics Assignment Ning Li s2782650 Lin Tan s2740728 Huy, VO s2862772 WORD COUNT: 531 Question 1 1.1 a) In 2012, it was the second driest in 60 years, and the 2011-2012 winter was unusually cold (Arbour, 2012). The weather in Spain, the world’s largest producer, was unexpected bad during harvest season. As a result, the output of olive oil was dramatically decreased, consequently as little as half of

Economics Essay

2637 words - 11 pages , we get to see how each layers gives us the results of the conclusion of Sweden's economic power distance. This leads us to how Sweden's society is driven. Hostede gives us two ways to describe a country based on how that society will be motivated to be the best (masculinity) or enjoying what you do (femininity.) In this case, Sweden is best described to be a feminine society. The quality of life is important in Sweden's culture. In most

Economics

4571 words - 19 pages 1. BASIC ECONOMICS Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. (L.Robbins 1935) Economics is the social science that examines how people choose to use limited or scarce resources in attempting to satisfy their unlimited wants. Wants - This is simply the desire of the citizens of a country. Each individuals wants are different and varies time to time

Economics - 5448 words

5448 words - 22 pages transportation and port services. 2.2. Definition of the Secondary Impact The secondary impact of port development on the local community and the immediate hinterland (i.e., the port-region) is generally defined as all activity in the region which is economically dependent on primary impact activity. Although what is conceived to be the port hinterland will vary spatially with each commodity exported and imported through the port, port

Economics - 2782 words

2782 words - 12 pages Lecture 2. Basic Economic Problems Economics is the science of making choice under conditions of scarcity. What are the basic issues about which choices are to be made? Any society must make choices about three important problems. They are 1. What to produce and in what quantities? Food or weapons; if so, in what quantities? Is it more food and less weapons or vice versa? 2. How shall goods be produced? Electricity from thermal power or

Managerial Economics

516 words - 3 pages .what is meant by managerial economics? Managerial economics is a study of application of managerial skills in economics,more over it help to find problems or obstacles in the business and provide solution for those problems.problems may be relating to costs, prices, forecasting the future market ,human resource management, profits etc. Managerial economics is a study of application of managerial skills in economics, more over it help to

Economics Essay

1260 words - 6 pages From the tutorials and lectures, what I have learnt is that economics is the study of how people choose to use resources. Those resources include the basic things like land, food, water, human resources and also include abstract things like time, space, experiences. The fact is that our resources are limited, that can be seen as scarcity of resources. However, people’s needs and wants are unlimited. So, the basic question is that how can our

Behavioral Economics

2030 words - 9 pages allow us to invest in human capital. Neoclassical or homo economics consists of two parts; microeconomics and macroeconomics. Microeconomics is concerned with the individual level of micro decisions and its importance to understanding our society. It deals with the choices of individual companies and households. In business, the choices are what to produce and how much to charge and in households what and how much to buy. Microeconomics

Economics Exam

2588 words - 11 pages explain the role of the price mechanism (market mechanism) in changing the pattern of resource allocation. 2 marks SECTION B – Question 3 – continued TURN OVER 2013 ECONOMICS EXAM b. Explain what is meant by each of the following. • an efficient allocation of resources 16 4 marks • equity in the distribution of income SECTION B – Question 3 – continued 17 c. 2013 ECONOMICS EXAM Explain what is meant by

Food Economics

841 words - 4 pages issues that affect this prices? Millions of people are just barely scraping by as it is, what is going to happen if food prices keep rising rapidly. On the stuff that people spend money on every day, prices have gone up. Food economics is one of the best examples of this situation. In America meat prices have risen by 138 % since March 2009. Actually high food prices are not a problem just in United States. The truth is entire planet is rapidly

Managerial Economics

4565 words - 19 pages Managerial economics as defined by Edwin Mansfield is "concerned with application of the economic concepts and economic analysis to the problems of formulating rational managerial decision."[1] It is sometimes referred to as business economics and is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice.[2] It draws

Related Papers

What Is Economics Essay

1452 words - 6 pages Economics is the attempt to understand the choices that a person or indeed a society as a whole makes, why he does so, and what the outcome of that choice maybe. In its essence, economics is a social science that studies ‘rational choice under conditions of scarcity’ (Tomlinson). Therefore, economics can be defined, as a study of the rational choices made in distribution of scarce resources to meet our unlimited wants. There are some

Economics Essay 781 Words

781 words - 4 pages Economics is the social science of making sufficient choices or decisions and studies how people interact in their society in an economic way. The first chapter introduces the subject of economics and unfolds what it is all about.We live in a society where economics is a valuable need in order for us to understand and handle any problems that maybe occur in the future. The basic economic problem is scarcity ; where people's wants and needs are

Economics Essay 1089 Words

1089 words - 5 pages ; however, when revenue from the added unit is less than cost, production should decrease. When both marginal revenue and marginal cost are equal, the firm maximizes profit (Basic Economics, 2011). Balancing Fixed and Variable Costs Every year businesses collapse because the owners fail to produce a profit. In order for businesses to turn a profit, they must find a way to keep production costs down. However, there are some costs associated

Economics Essay 736 Words

736 words - 3 pages Internet Article/Economic Theories University of Phoenix ECO360/Economics for Business I Amy Green June 21, 2007 Supply, Demand and Price In applying economic theories in today’s society is a broad case of reality. One must understand how policies most be carried out effectively to keep valued judgment separate form analysis. A great economist must divide economics into normative, positive and descriptive economics in order to