Economics & study Essay

Economics is the adopt of how somebodys use scarce picks to satisfy their needs (Lee, et al). thither argon a number of concepts that atomic number 18 associated in learning economics. These include limited resources, opportunity toll and trade-offs among m both early(a) factors of consideration. To attend and be qualified to chafe wise conclusivenesss in the purchasing of any good and service, whizz should better understand these concepts of economics. They atomic number 18 also imperative in the production of goods and function which is the primary aim of hit the booksing economics (Salaman, 1). cash and time are resources that are finite (Lee, et al). They are thereof called limited resources. A scarce resource is a resource that has a high carry and therefore proper decision making is mandatory to ensure that they are used optimally. Economics involves the dispersion of resources so that they can satisfy individual needs. funds is scarce because it is limited i n supply and therefore it should be used wisely to satisfy valet de chambre needs (Lee, et al). For instance, if an individual has $ 500 in the pocket, he will choose to pay for his rent quite than buying beer for himself.Time on the other legislate is an economic resource and one needs to resolve well on what to do at a certain time and what to do at other times. In our daily lives, we often make decisions that violation the purchase of goods and services. These decisions depend on what our needs are and what are the resources that are at our proposal. Making decisions in economics is a very vital set when it comes to purchasing of goods and services (Salaman, 1). An individual should make a decision that he or she will non regret when the scarce economic resource runs out.To make a good decision, one should really understand some concepts in economics like the footing theory. Price theory makes one understand the prices of commodities that are in the market. When one under stands the price theory, he or she can make the correct decision on what to buy at what price without find oneselfring many losses. Opportunity toll results after careful decision making (Lee, et al). It is the cost which is equivalent to the value of the outdo alternative that an individual sacrifices in doing something else.By making a choice in whatever an individual does in life, he or she must incur opportunity cost. It can either be a bare(a) benefit or a marginal cost. For instance, an individual whitethorn have choices of either connecter a masters program or acquiring employed in a company paying him $ 100,000. If the person decides to go for the masters program, his opportunity cost will be $ 100,000. peripheral benefit is delimitate as the benefit that is got by adding one special(a) unit in the level of activity (Lee, et al).Marginal cost on the other hand is the redundant cost incurred by adding an extra unit in the level of activity. Generally, since all cons umers are assumed to be rational, they tend to minimize marginal costs and maximize marginal benefits. The difference between the two gives the profits benefit. Trade-offs on the other hand is closely connect to opportunity cost although it reallocates the amount of time or capital to be spent (Cage). This implies that there is that money that is set aside for spending on perchance house expenses.By buying less of what is non necessarily important and buying more of what is necessary, one shall have incurred a trade-off. It involves reallocation of money or time from what had been planned on (Cage). In conclusion, the study of economics helps individuals to determine on the type of choices they are to make in their daily lives. Deciding on what good or service to purchase may call for one to understand the concepts of opportunist cost, trade-offs and approximately importantly, have the knowledge of the scarce resources that are obtainable to him or her.Works Cited Cage, Micha el. The differentiation trade-off and trade to values. 2010. Web July 14, 2010 from http//www. entrepreneurslife. com/thoughts/entry/the-differentiation-trade-off-and- marketing-to-values/ Lee, Kylen, et al. The scope and methods of economics. September 17 2006. Web July 14, 2010 from http//www. econguru. com/introduction_to_economics/scope-method. html Salaman, Graeme. Decision making for lineage A reader. London SAGE Publication Ltd, 2002.