Our everyday life is involved with several economic concepts. Knowingly or unknowingly, we use various economic concepts in our daily life while making a decision. It is really a good idea to have a basic understanding of economics so that we can make our economic decisions smoothly, wisely and efficiently.
What actually is economics? The term was used by the Ancient Greeks and comes from a Greek word meaning ‘management of the household’. Nowadays, economics encompasses much more than this, but households and individuals have always been building blocks of the economy. People make a decision about what to buy with their incomes and how much to work. In doing this they encounter a basic economic fact of life: resources such as food, electricity or time are limited and choices have to be made about what to consume and what to produce. It is people who make these choices, so explanations make a consumer buy a new computer, a businessperson build a factory, and a worker accepts a job in a far off city?
Most economists think of their subject as a science: they try to uncover general laws that govern economic phenomena, such as trends in unemployment – just as physicists look for laws that explain the acceleration of a rocket.
This series demystifies the complex vocabularies of economics and gives you a basic understanding of economics. I hope you will enjoy learning economics.