Understanding Economics:
What is Economics?
Economics is the study of the emergence of order and wealth creation and the consequences of the choices made as part of the extended order of human cooperation.
There are two broad fields within economics: Micro and Macro.
What do we mean by that?
- Generally Micro is the study of the trees (small details) we analyze the choices individual choosing agents make. You as a CEO, as a religion, as an individual.
- Macro in some sense is an aggregate; we look at the choices of many and then see what effect is on society. We can look at the impact of individual choices on society.
- Microeconomics is properly the study of price theory.
1. It helps you appreciate the wonders of where we live. We should have a sense of wonder about the world.
2. There are important concepts. Every action we take involves a consequence. “The road to hell is paved with good intentions.” Intentions do not equal results.
3. People need to understand certain facts. Get facts correct instead of relying on other people.
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