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’s economy.

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