What is Economics? Where Does it Start?
Economics starts ultimately with the fact that "Man Acts Purposefully" every single time you make a decision you choose with a purpose. The main question for social scientists is why do we do this?
- Economists would say we do this because we live in a world of scarcity.
- The only reason we have to make a choice is because we live in a world characterized by scarcity, which is a condition under which we have to choose.
- If you make a choice you have to give something else up to do it.
HOW DO WE DEAL WITH SCARCITY?
We economize. We are always comparing two things, expected benefits and expected costs.
Non- economists sometimes assume that there are clear benefits that are obvious to everyone. Some people assume that the value is what a product is worth. but the point is values are costs are not OBjective, they're SUBjective.
Cultural norms and mores also dictate how we economize. People often don't understand that at it's heart economics is relevant to people.
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