Definition essay

Name
Institution
Course
Date
Economics
What comes into your mind when you hear the word economics? Money definitely, and other complicated things like inflation and unemployment. Many people will always think about scarcity of resources and how these scarce resources are allocated to cater for the unlimited needs and wants. Economics is generally the study of consumption and production of goods and services and the transfer of wealth to produce these goods and services. Human beings are full of needs and wants, yet there are scarce resources to satisfy these needs. Goods and services are used to satisfy human needs and wants. Goods and services are scarce and in limited supply demanding that human beings (consumers in economic terms) take and make the optimal and most efficient economic decision to be able to somehow satisfy their needs and wants. Consumers are rational. Consumers will always prefer more to less: no matter which optimal decision the consumer make scarcity will always exist. Economics studies the decisions that we all make, from individuals, institutions, to the government. Economics is a science that deals with production and allocation of goods and services. Why do some people own more resources than others do? Why are some people rich than others? Can the differences be attributed to a problem in the distribution and allocation of the scarce resources? it is very hard to get an objective answer for these questions. It is therefore important to study how scarce resources can be distributed to meet the needs of the majority at the expense of few minority who can take advantage over others for one reason or the other. The world is a global village and people across all continents are connected towards each other in one way or the other. The study of economics thus becomes very relevant. Talking about resources, resources are the inputs such as labor, land, and capital that people use to produce goods and services. Goods are tangibles such as food and housing while services are intangible products of the production process such as those provided by security personnel. One means through which the society allocates goods, services, and the scarce resources is the market.
Economics is a very important part of our life and thus it is very important for us t...