What Is Economics?
The underlying causes of economic events may not be very complicated, but political rhetoric and economic jargon tends to confuse the public and get distorted by the media.
The basic principles of economics have applied for thousands of years and are applicable to any culture and system of government.
Economics applies to an economy where there is a system for the production of goods and services which everybody uses day to day.
There needs to be scarcity in order for us to need to economize. In other words, there is more demand than goods and services that are available. There is never enough to completely satisfy everybody.
Economics studies the consequences of decisions made about the use of resources that go into producing the output that determines the standard of living for a country.
Comparing the available resources and the standard of living between rich and poor countries can reveal the differences in the consequences of the decisions that were made affecting those countries.
Resources tend to have alternative uses. Resource allocation should be done efficiently to get the best result. Also, efficiency of production is important.
Economics is not based on opinions or emotions, but is a set of principles derived from a body of tested knowledge of causes and effects.