Economics is the study of how scarce

Economics is the study of how scarce (limited) resources are used to satisfy human wants. It studies the causes and effects of the choices people make when they use resources. Economics can involve individuals, a group of people, businesses, or countries. The things people want and need are divided into two categories: goods which are thing like physical objects while services are some actions that someone does for someone else. The basic problem in economics is scarcity, there are limited resources to meet our unlimited wants. Scarcity will always occur in society. Some people tend to believe scarcity and shortage are the same, however a shortage is when the quantity of a product available is not enough to meet the current demand. All of the things used to produce goods and services are known as factors of production.The three factors of production are: land which means any natural resource used to produce goods and services. Labor which means any action a person performs that they get paid for. Lastly, capital which means any man made business used to make financial wealth. There are also two types of capital which are physical and human. Physical capital refers to a factor of production and human capital is skills, knowledge, or other intangible assets of individuals that can be used to create economic value for individuals. The economists concept of cost is something given up when choosing something else. The alternative that was given up is the cost of the choice called “opportunity cost.” Opportunity costs is not all of the alternatives you could have selected, it is what is lost by choice you made. There are many effects of rising prices also known as inflation. A inflation rate is the percentage change in price level over time. There are two types of inflation one known as creeping inflation which is a inflation that remains low (1 to 3 percent) for a long time. Also, there is chronic inflation which occurs when the inflation rate rises steadily from month to month over an extended period. Some of our economic issues are unemployment, limited resources, and greed. The three main economic choices are what to produce, how to produce, and for whom to produce. The three have become the central issues of an economy, understanding these will help to develop rational decision making. The main role of economics is to make optimizing decision with restrictions on it. I think two other economic choice should be added and that is how to manage money and what steps can be made to get rich the legal way. These are questions that can be lifelong, character developing, and making you a better financier and business person. This is more important than you think. If i could learn how manage money better and learn some efficient ways to get rich I would have probably dropped out of school. This is why I think the school system has failed us as student because we should have been learning ways to be successful surround economics. Ever since I hit middle school, I always thought of ways to become wealthy at a young age and I have basically always been trying to put into action my own way. For example, in 10th grade I sold candy, snacks, and drinks at school and if they didn’t hate on our success around the school I would have made a lot of money. Also, what comes with that is responsibility and competition. I had to manage my money, budget it, make sure nobody was stealing it, add up my profit, and see what people liked and didn’t like. Even though my profit was very good I still had to set a budget I can use so I can buy more of the product to restock. This plan might have not lasted long but I will still do whatever I can to be wealthy.