ALL ABOUT ECONOMICS

Key Concepts Covers :

What is Economic?
Understanding of Economics
How do we use economics in
our daily life?
What is Economic?
- Is the study of how people make decisions given
the resources, scare resources that provided to
both business, its not just about people, it’s also
how business and government make decision as
well.
- which means management of the household
 - Give the unlimited wants of each household member and
limited resources.
For example : family income you need to manage resources
to maximize the satisfaction of thehousehold, so that is the
time where economic get in. So given those scenarios we are
talking about limited resources and unlimited human wants.
- As a human being we have only limited resources and in
this situation, we need to make important choice or decision
to maximize our satisfactions and this is why economic is
important.
 - Economics really means about human actions, its about the choices
and actions we make as individuals, its about our individual wants and
needs and abilities. It is about how we interacts with each others to
benefit individuals and build the society around us.
- Does not tell us in which any individuals should do instead
economics deals about understanding the cost of out dicisions about
understanding how we can create value by satisfying our wants and the
wants of others, and about the ways that we are individuals all play a
role in contributing to the rise or fall of civilization.
How do we use economics
in our daily lives?
 - We use economics of someof the most important life
dicisions. Just like whom you marry and where you live.
Before deciding on any events, a person perform what
Economist call a cost benefit analysis. Simply put the pros are
weighed against the cons. If one choice provides one utility or
personal satisfactions., than other choice, the dicisions we
made.
 -It can use also in our household budgeting.
Economics permeates into everyone’s daily
life in the area of purchasing decisions. How much
money you have in your bank account dictates
what types of purchase you make. Economic
groups purchasing choices into three groups :
luxury goods, normal goods and inferior goods.
 Economist defines that inferior
goods as a product less desired when
incomes increases. Normal goods are
purchase with a rise income. While
luxury goods also rise once a certain
income to achieved.