Basics Of Economics

Economics is all about use, exchange and ownership of resources that are scarce.  When these scarce resources are exchanged this is known as economic behaviour.

There are 3 main factors to take into account when studying economics;

  1. Why are the scarce resources being exchanged in the first place and what are they?
  2. In order for different parties to feel happy in an exchange, how do they communicate and deal with each other?
  3. What the role of the government is in facilitating these exchanges.

 

If a private company or government hire a professional economist, they are often looking for some kind of economic intelligence in order to make sound business decisions.  With all decisions there is associated risk but the role of the economist is to gather and analyse the market intelligence so that some sort of accurate information relating to costs and benefits can be provided.