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The Importance Of Economics In Daily Life

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According to our textbook, Survey of Economics: Principles, Applications, and Tools, economics is defined as “the study of choices when there is scarcity”. But what is scarcity? Scarcity is the idea or concept that the resources used to create good or to complete tasks are limited in quantity. This means that the study of choices based on these limited goods, economics, should determine the best way to distribute the goods in the most efficient way possible.
For example, as a college student, I have many limited resources, with some examples being time and money. These resources are scarce and thus I must make a choice to use these resources to the best of my abilities. This is where economics comes in and plays a part in my day-to-day life. I must choose what to spend time on, for instance doing homework instead of taking a nap, and not waste the limited amount of time in a day that I have. Economics has a way of pointing out the flaws in your use of resources and your wastefulness. If I was to go out every night for dinner and spend my money on fast food instead of using the meal plan I have on campus, I could, possibly, be very wasteful in my spending. However, if I used economics for its rightful purpose of study, to chose wisely on how to use my limited resources, I could see how I might conserve or decrease my spending. However, this results in a trade-off I may not like- eating at the college’s dining hall instead of McDonalds.
Trade-offs are just one example of the

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