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Understanding the Basics of Economics Essay

When you think of economics, you might be assuming that the whole thing has got to do with complicated mathematical equations and even charts and theories. But the truth of the matter is that economics is actually based on something very simple, it deals with the handling- demand, supply and exchange of services as well as goods. However, this is also a study which is based largely on human behavior as well. The study of economics is so interesting as it can all fluctuate greatly with the natural instinctual behavior of man. In very simple terms - if you live an ordinary life with an average sum of money to spend each month, there are certain expenses that you will naturally have to take care of- this will include paying your rent, spending some money on food as well as other basic necessities. However, with the remaining amount of money you may buy a great new DVD player even though your old television set is lying around and need to get it repaired. So, those people who study economics have the task to try and figure out why it is that you decided to spend money on the DVD player instead of fixing your TV. This is of course only an aspect of the study, but the basics of it. It all operates on the basic logic, that the behavior of human being and the choices that he makes are based completely on his own interests and an interest in fulfilling them. Therefore, it is also a kind of social science that has a lot to deal with buying and selling things as well as using services. So from studying wealth to studying man, it is a huge area of interest that economics covers.


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