Scarcity
The idea of Scarcity is that we
can’t have sufficient things. We want as much as we did like to have their
limits that keep us from having everything.
What are these limits scarce resources?
Why are these resources scarce, because these resources are hard to find.
For
example, money is a great example let's say you want a phone and a
laptop but you don't have enough money to buy both you're forced to choose
between these two still if you have sufficient money to purchase two goods you
will still have to decide among purchasing those goods or purchasing supplementary
things. What I am attempting to say that you can never have sufficient money
which makes it an insufficient (scarce) resource.
Time is another scarce
resource, suppose you need to work but you also want to plan your Xbox you can
go to work or you can play video games but you can't do both at the same time,
of course, you can do one after the other but there are only hours in a day by
doing one thing you'll have to cut another thing from the schedule.
What
is Economics?
The word economics is
derived from the Latin word Oiko Nomos which means that household economics. Resources
are studied in Economics, as well as money.
Dictionary
definition
The word economics might have a
rather long and complicated definition something like the science that deals
with the production distribution and consumption of wealth and with the various
related problems of labor finance taxation etc
In
Reality
Economics is extremely important
subject and you should learn it to do with money and deferent resources. I bet
it, becomes a lot more exciting for example in our market
place you can create items for sale in our virtual world you are producing a digital
or virtual product and earning a money as a type of gold or scoop to pay out.
If you haven't already, I bet you'll want to start creating items for sale
after reading this blog
The
money side of economics
We need to learn some basics
first; the first thing to know is that economics deals with resources. Here we
discuss three types of economics resources.
Natural
Resources
Natural resources are the
things that occur in nature, like wood from trees and coal from the
earth.
Human
resources
Human resources are the people who create and
make items for others to use especially the people who make cakes at the
bakery.
Capital
resources
Capital resources are tools and
equipment that workers use to make things like a crane to build a tall
building.
Production
The word production means to
produce or make things and these things are divided into two types.
- Tangible things
- Intangible things
Tangible
things
Those things you can see and touch is called Tangible object/things. Our daily lives are filled with tangible items and a result of production, for example, a car is produced in a factory an artist produces a painting for sale a salesperson makes delicious ice cream with our favorite toppings that we eat these things are all things that we can touch and see.
Intangible
things
Intangible things like service
information or energy. Moreover, we are bounded by production of intangible items
have you always asked query to teacher, a query her reply or information’s is
an in-tangible thing created by a human being a store that I live by hired a
security guard to watch over the store and prevent people from stealing things
her watching over the store service is an intangible item.
How
to produce and sell
In economics studies we focus at
how things are produced. Owners of business wish their businesses’ to contain a
higher productivity level. Meaning that their goods are being ready as reasonably
and speedily as doable, business owners and manager’s observe all parts of
their business’ to make confident that they are being as flourishing as probable.
If you can create a very eye-catching couch in our marketplace in a short
amount of time and you're able to sell them to a lot of other users you are
being very productive.
Money
Money is a very important part of
economics. However, in the recent time, money has not at all times existed.
Yes, that's right a world with no money, how can this be well before money was
invented and became common people bartered and traded for resources. A cultivator
may have traded with his several agricultural items like onion, wheat etc and
animals’ to a news paper man to compensate for an annual payment. Today, we
mostly use the money to buy things. We wish for money can-be touchable, for
instance, bills, dollar and coins and in-tangible for instance, using a
debit-card in the case of our market place gold or scoop. Now people earn money
by working then the money they earn can be spent on whatever they choose they
spend money on goods and services that can come from anywhere in the
world. Moreover, economics studies how to produce, where to produce, when
to produce and why to produce. We spend our money studying how economics
works to help us to learn and be good consumers or the people who buy and use
resources it also helps us. If we want to own a business and make money so now
that we've learned the basics of economic.
Let’s come up with an easier
understanding of the definition, economics is the study of resources the kind
of resources they are how they are produced and how they are used.
Additionally, we studies how money is utilized in buying all types of resources
in economics.
All economic questions fall into
two categories
Positive-economics
For instance, a question why do
people utilize money is a positive-question. Generally, a practical rule is
that if your model of economic has no judgments value its positive-economics.
Normative-economics
Normative question is people should
utilize money. It is normative economics if it does have judgments value. Since
to notify to anyone what he must to perform, you have to moderator. What is
good for him or her?