Question

Why do we study Economics? Discuss

Answer 1

Economics is a study of resources at the time of scarcity. As a human being our need are endless but the resources we have to meet those needs are limited. Economics allows us to manage those resources in a most efficient manner in production and distribution of those products produced among different section of society. Ultimately improving the standard of living, the income of people.

For achieving this goal economics work at two level first micro level and we call it microeconomics. It is generally related to a single firm and how that firm can become more efficient and use the resources efficiently. Second, we use economics at the macro level to look the things as a whole and evaluate variables like the income of a society, employment, and demand generation capability. We call it macroeconomics.

All the functions of economics revolve around three general questions they are What to produce? How to produce? and for Whom to produce? Any society to satisfy the need of the people have to answer these questions without it the production might be just a wastage of resources and the main objective of economics to manage resources at the time of scarcity will be left unanswered.

Economics enables us to understand the demand created by people and act accordingly to satisfy them. Without economics, we will be producing goods which no one wants and be wasting out resources leaving people's demand unattended.