The Basic Concepts Of Economy - 1399 Words

The Basic Concepts of Economy Nowadays, the most important aspect of the world is about economy. It has been going into every single thing in people’s daily life deeply and deeply and influencing people’s behaviors and attitudes about the meaning of living. Sometimes it is very easy to be ignored, but economy is playing a very significant role in this modern age. For example, when people purchase a vehicle and make payment by instalment, they are completely get involved into economy, which is people usually called as business. Moreover, it happens among countries in this world. Economic level has become decisive index which is presented by gross domestic product, the GDP, and determined the country’s ranking for many years. If†¦show more content†¦More specifically, the resources that are helpful to satisfy human’s demand are scarce. In addition, some resources are scarce when there are not freely available, which means their price are more than z ero. Second, people have unlimited wants. This means everyone in this world always want more resources as long as they can satisfy these variable wants, for example, a new car, a nicer home, and more free time. Based on these two economic truths, one conclusion that although people’s wants, or desires, are virtually unlimited, the resources available to satisfy theses wants are scarce. This is so called the economic problem. When the economic problem is admitted, people will face several choices of economic behaviors. Should they work more for earning money to buy necessary scarce resources to satisfy their wants, or should they chose work less so that they can have more free time to have a rest and arrange their own life? Economy is created no other than helping people to solve these problem. Economics examines how people use their scarce resources to satisfy their unlimited wants. This means, beginning with resources, then goods and services, and finally focus on the heart of the matter-economic choice, which results from scarcity. Since resources are so important, it is necessary for public to understand the meaning of resources to improve their ability of solving the economic problem. The definition of resources is that resources are