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what does
economics study?
what do you think of when you hear the word
economics? money, certainly, and perhaps
more complicated things like business, inflation
and unemployment. the science of economics
studies all of these, but many more things as well.
perhaps you think that economics is all about
the decisions that governments and business
managers take. in fact, economists study the
decisions that we all take every day.
very simply, economics studies the way people
deal with a fact of life: resources are limited, but
our demand for them certainly is not. resources
may be material things such as food, housing and
heating. there are some resources, though, that
we cannot touch. time, space and convenience,
for example, are also resources. think of a day.
there are only 24 hours in one, and we have to
choose the best way to spend them. our everyday
lives are full of decisions like these. every decision
we make is a trade-off. if you spend more time
working, you make more money. however, you
will have less time to relax. economists study the
trade-offs people make. they study the reasons
for their decisions. they look at the effects those
decisions have on our lives and our society
