Economic issues affects are daily lives ,whether reading a newspaper on a report on “local market”, watching state of economy on the television news, even discussing with friends and colleagues regarding the price of a product or whether you can afford this or that.
Economic problem and making decision are part and parcel of our lives. What should I buy? Should I go into University or Tafe? Should I go to University or should I work and earn?
What is Economics all about?
For economist, “scarcity” is the central economic problem.
What is scarcity?
Although our wants are unlimited, resources available to fulfill those wants are limited.
What is the solution?
People must make choices as they try to achieve their goals. This is the basic fact of life.
What does choices reflect?
Every choice reflects trade- offs or sacrifice as we are living in a world of scarcity. For every choice we make we pay a cost and that cost in economics is called Opportunity Cost.
This economic problem is also known as “scarcity problem”, which is an universal problem.