Thursday, August 6, 2020

What is Economics? The Top Ten Answers

What is Economics? These are the top ten answers to that question:
1. Economics is the study of how to prioritize society's scarce resources, typically by assigning a money price to each resource and then comparing price values in order to prioritize the usage of resources.
2. Economics is the study of costs and benefits, typically on the understanding of profit as the condition where the sum of all benefits exceeds the sum of all costs for economic actors to the maximum extent possible.
3. Economics is the study of supply and demand, such that the efficient economy is one where supply clears demand at the equilibrium point between supply and demand.
4. Economics is the study of human action, which presumes a subjective desire, a purpose, and at least one or more competing means to achieve that purpose, and the prioritization of some means over other means.
5. Economics is the study of trade in a division of labor economy and how trade works, and, more specifically, the use of money as a common medium of exchange for trade.
6. Economics is the study of rational self-interest and how economic actors act to maximize their self-interest within the context of a broader society of humans.
7. Economics is the study of how politics shapes the material existence of the human species.
8. Economics is the study of the conditions of freedom that enable human beings to survive, thrive, and prosper.
9. Economics is the study of historical economic data from which to infer trends that may be prescriptively applicable to future events.
10. Economics is the study of how people pay for the things that they have.