What is economics all about?
Economics is the study of how people choose to use resources. Resources include the time and talent, people, the land, buildings, equipment, and other tools on hand, and the knowledge of how to combine them to create useful products and services. We make all kinds of choices every day. Economics is about making choices. Many people hear the word "economics" and think it is all about money. Economics is not just about money. It is about weighing different choices or alternatives. Some of those important choices involve money, but not all. Most of our daily, monthly, or life choices have nothing to do with money, yet they are still the subject of economics. Important choices involve how much time to devote to work and to leisure, how much money to spend and how much to save, how to combine resources to produce goods and services, and how to vote and shape the level of taxes and the role of government.
Some people might also think economics is all about being efficient--not making foolish or wasteful choices about how we spend or budget your time and money. That is certainly part of what economics is about. But Economics is even more than that. We all know that we can save money or time by being more efficient in our planning. But we sometimes don't choose the most efficient options. Why not? Economics is also about plumbing the depths of why we sometimes do and sometimes don't make what seem like the economical choices.
In short, economics includes the study of labor, land, and investments, of money, income, and production, and of taxes and government expenditures. Economists seek to measure well-being, to learn how well-being may increase over time, and to evaluate the well-being of the rich and the poor. From its beginnings in the moral philosophy of the 18th and 19th century, Economics soon became a science, and although it seems that many issues have basically not changed a lot, the methodology has become much more complex...
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