Economics Homework Help
Economics deals with the laws and principles which govern the functioning of an economy and its various parts. An economy exists because of two basic facts:
- Human wants for goods and services are unlimited and
- Productive resources with which to produce the goods and services are scarce.
Economics can be explained in simpler terms in the following ways:
- Science of wealth
- Science of material well-being
- Science of choice making and
- Science of dynamic growth and development.
Consider the following situation.
It is your birthday and your mom gives you $500 as birthday gift. You are free to spend the mpney as you like. Now you have the following choices:
- You can throw a party for your friends,
- You can buy yourself a dress
- You can go for a movie and eat in some restaurant
- Or you can save the entire money.
Now, you have so many options before you. You will have to go for one best option or a combination of one or more options. Thus you are in a dilemma because you are restricted with the specific amount. Similar dilemma is faced by every individual, every society and every country in this world. Thus, the government of a country has to make the best choice amongst all for the betterment of the country‚Äôs economy.
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