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Economics: Trade-Offs In A World Of Scarcity

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Economics is about choices and trade-offs in a world of scarcity. The social science that studies the choices that individuals, organization, businesses, governments, and entire societies make as they deal with paucity and the enticement that effect and resolve those choices is the basis for the definition of economics. So, what is scarcity? Our inability to satisfy all our wants is called scarcity. It’s also mean that all individuals, no matter rich or poor, they are always dissatisfied with what they have and want get more. All economic questions arise because we want more than we can get. Everyone in the world confront scarcity, so we must make choices. The choices we make depend on the incentives we face. An incentive is a prize that inspires …show more content…

Economists may disagree on the validity of alternative positive theories of how the world works or may have different values and thus have different qualitative perspectives on what policy should try to achieve. Economists like social scientists, so economists try to understand and predict the impact of economic forces by using the first scientific method developed by physicists. Scientific methods are a common way to systematically check what works and what does not work. An economist starts with a question or a puzzle about causes and consequences arising from some observed facts. Standard economists with active economists sometimes disagree on assumptions and models as well as on policy use. Some disagreements can be solved by attracting other events, but others cannot. Disagreements that cannot be resolved with facts are standard statements - statements about what needs to be. Disagreements can be resolved by the fact that positive statements - statements about what is.
To conclude, Economics as Policy tools and it provides an approach to problems in all aspects of our lives such as individuals, organization, business and government. Learning economic way of thinking will help we understand deeply how consumers and businesses make decisions in the context of scarcity and how they interact with each other in the marketplace. It also examines the impact of government policies and actions on market outcomes. Economic thinking provides a framework for decision making for individuals, business managers, and policy

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