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

What's economics - Essay Example Hall and Lieberman (3) state that there is a fundamental 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 many 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 possible 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 economy or large segments of it (Jain & Ohri 3). It is concerned with the rate of inflation, national 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 main theories and concepts of microeconomics so that I