* Herwin Mopangga
* Lecturer, Gorontalo State University
As you begin your reading, you are probably wondering, why study economics? In fact, people do it for countless reasons. Some study economics because they hope to make money. Others worry that they will be illiterate if they cannot understand the laws of supply and demand. People are also concerned to learn how budget deficits and inflation will affect their future.
Choosing your life’s occupation is the most important economic decision you will make. Once you have earned your income, economics will help you decide how much to spend or save. Of course, studying economics is not guaranteed to make you a genius, but without economics the dice of life are simply loaded against you.
Problems of Economic Organization
Every economics must solve the three fundamental economic problems. What kinds and quantities shall be produced of all possible goods and services? How shall resources be used in producing these goods? And For whom shall the goods be produced (that is, what shall be the distribution of consumption among different individuals and classes)?
The basic problems matter because of the fundamental fact of economic life; Wants far outstrip the economy’s capacity to produce goods and services. Economic goods are scarce, not free. Society must choose among them because not all needs and desires can be satisfied.
Experts said that economics is the oldest art but the newest science. Economic activities had been applied by the ancient civilizations. But it can be formal science thousands years later, appropriate on eighteenth century. As a scholarly discipline, economics is the three centuries old. After Adam Smith published his pathbreaking book The Wealth of Nations in 1776, Karl Marx’s Capital (1867, 1885, 1894) and John Maynard Keynes with The General Theory of Employment, Interest and Money in 1936. There were three of the many thinkers who had been shaped economics and made it the vital science it is today.
Economics is the study of how societies choose to use scarce productive resources that have alternative uses, to produce commodities of various kinds and to distribute them among different groups.(Samuelson & Nordhaus, 1989 : 4)
Both a science and art, economics studied for a variety reasons; to understand problems facing the citizen and family, to help governments promote growth and improve the quality of life while avoiding depression and inflation and to analyze fascinating patterns of social behavior. Because economic questions enter into both daily life and national issues, a basic understanding of economics is vital for sound decision making by individuals and nations.
The Uses of Economics
As we suggested earlier, our economic knowledge serves us in managing our personal lives, understanding society and designing better economic policies. The role of better economic understanding in guiding our individual lives will be as varied as are our personalities or physiognomies. Learning about the stock market or about interest rates may help people manage their own finances better; knowledge about price theory and antitrust policy may improve the skills of a lawyer; better awareness of the determinants of cost and revenue will produce better business decisions. The doctor, the investor and the farmer all need to understand about accounting and regulation to make the highest profit from their business.
Choosing your life’s occupation is the most important economic decision you will make. Once you have earned your income, economics will help you decide how much to spend or save. Of course, studying economics is not guaranteed to make you a genius, but without economics the dice of life are simply loaded against you.
Problems of Economic Organization
Every economics must solve the three fundamental economic problems. What kinds and quantities shall be produced of all possible goods and services? How shall resources be used in producing these goods? And For whom shall the goods be produced (that is, what shall be the distribution of consumption among different individuals and classes)?
The basic problems matter because of the fundamental fact of economic life; Wants far outstrip the economy’s capacity to produce goods and services. Economic goods are scarce, not free. Society must choose among them because not all needs and desires can be satisfied.
Experts said that economics is the oldest art but the newest science. Economic activities had been applied by the ancient civilizations. But it can be formal science thousands years later, appropriate on eighteenth century. As a scholarly discipline, economics is the three centuries old. After Adam Smith published his pathbreaking book The Wealth of Nations in 1776, Karl Marx’s Capital (1867, 1885, 1894) and John Maynard Keynes with The General Theory of Employment, Interest and Money in 1936. There were three of the many thinkers who had been shaped economics and made it the vital science it is today.
Economics is the study of how societies choose to use scarce productive resources that have alternative uses, to produce commodities of various kinds and to distribute them among different groups.(Samuelson & Nordhaus, 1989 : 4)
Both a science and art, economics studied for a variety reasons; to understand problems facing the citizen and family, to help governments promote growth and improve the quality of life while avoiding depression and inflation and to analyze fascinating patterns of social behavior. Because economic questions enter into both daily life and national issues, a basic understanding of economics is vital for sound decision making by individuals and nations.
The Uses of Economics
As we suggested earlier, our economic knowledge serves us in managing our personal lives, understanding society and designing better economic policies. The role of better economic understanding in guiding our individual lives will be as varied as are our personalities or physiognomies. Learning about the stock market or about interest rates may help people manage their own finances better; knowledge about price theory and antitrust policy may improve the skills of a lawyer; better awareness of the determinants of cost and revenue will produce better business decisions. The doctor, the investor and the farmer all need to understand about accounting and regulation to make the highest profit from their business.
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