Economics, Scarcity, and Choice :: Economics

economics, Scar city, and Choice economic science is the cartoon of choice under conditions of scarcity Scarcity a situation in which the do of something available is insufficient to satisfy the desire for it.- time and purchasing causation are scarce As individuals, we face a scarcity of time and spending power. Given more of either, we could have more of the goods and work that we desire.Resources the land, force back, and pileus that are used to unveil goods and services- scarce labor the time human beings spend producing goods and services capital long constant gibes used in producing goods and services physical capital buildings, machinery, equipment human capital skills and training workers possess land the physical space on which labor occurs, and the natural resources that come with it As a society, our resources, land, labor, and capital, are insufficient to produce all the goods and services we might desire. In other words, society faces a scarc ity of resources. Raw material not long lasting tool Ex. ChalkWhat to produce?How much to produce?How to produce it?The World of EconomicsMicroeconomics the study of the behavior of individual households, firms, and governments the Choices they make and their interaction in item markets What happens to the cost of movie tickets over the next five years? How umteen jobs volition open up in the fast-food industry?Macroeconomics the study of the prudence as a whole Lumps all goods and services together and looks at the parsimonys total output.Positive economics the study of what is, of how the economy works (deals with the facts)Ex. If we lower income tax rates in the U.S. next year, pass on the economy grow faster? If so, by how much? What effect will it have on total employment? normative economics the study of what should be it is used to make value judgments, identify Problems, and prescribe solutions. Normative analysis is based on positive analysis.Why Study Economics1. T o understand the world better- understand global and cataclysmic events such(prenominal) as wars, famines, epidemics- understand local problems ex. Worsening traffic conditions in the city- tell us how many skilled therapists, ministers are available to avail us2. To gain self-confidence- when you master economics, you gain a backbone of mastery over the world, and thus over your own life3. To get hold of social change- make the world a better get in