What's economics Essay Example | Topics and Well Written Essays - 500 words

Whats economics - Essay ExampleHall and Lieberman (3) state that there is a vestigial problem with human beings in this world and that lies in the fact that we have unlimited wants although our means to achieve these wants are limited. For example, in life, there are galore(postnominal) things that we will want to achieve. However, because we have few resources available to achieve those wants, we have to make good choices that will enable us to get the best feasible situation in life.Economics is therefore a subject that studies how to make the best choices. Whenever a choice is made, the alternative satisfaction forgone is known as the opportunity cost (Hall & Lieberman 3). This means that economics helps us to make the wisest choice and get the best satisfaction in personal terms as well as relative terms (in relation to the opportunity cost).There are two levels within which economics is studied macroeconomics and micro economics. Macroeconomics is concerned with the whole ec onomy or large segments of it (Jain & Ohri 3). It is concerned with the rate of inflation, commonwealthal unemployment and other things of national concerns.There is another branch of economics that studies the behavior of individuals, households, firms and governments (Hall & Lieberman 8). This branch of economics studies the choices that these units of a nation make and the interactions of these units. This branch is called microeconomics.Microeconomics is concerned with the interaction of the forces of demand and supply by individuals, households, firms and governments. It seeks to identify the effects of rational decisions in terms of choice in these units of a nations economy. Microeconomics ends up in the formulation of theories about the most rational members of these sub units are likely to take.Personally, I hope to learn more and become a rational individual and also grow up to take rational decisions everywhere I will find myself. I expect to learn the master(prenominal ) theories and concepts of microeconomics so that I