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Wednesday, January 09, 2008

“All of life is Economics”

In defending the statement "All life is Economics" within my contemplation of my future educational and career goals the definition o this statement seems to be that life is made up of choices, gives and takes, and vital decision-making that will determine that which is set out before us within our future. What is Economics? Economics is that which is the study of how the "forces of supply and demand allocate scarce resources. Subdivided into microeconomics, which examines the behavior of firms, consumers and the role of government; and macroeconomics, which looks at inflation, unemployment, industrial production, and the role of government." The fact that my use of economics is all based upon the fundamental idea that I may choose one thing over another is an idea that applies to my future path within economics no matter what decision is made. The definition that truly marks that which is economics within our everyday lives is "Economics is the study of the decisions involved in producing, distributing, and consuming goods and services."

For instance, I may choose to be a doctor in the future, but in choosing so, I then choose giving up much family time and social interaction. One may choose vacations in Hawaii or Europe and name brand department store clothing over a beautiful two-story house and a porche in their garage and this would be an economic decision that they therefore should not regret for they economically chose that lifestyle that fits who they are and how they happily live their life. There is a constant give and take to the life of economics for reasons that include supply and demand and that involving that which the consumer chooses. What is supply and demand?

Supply and demand is that in which is one of the most fundamental concepts of economics and it is the foundation to a market economy. "Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand. Life, in a sense may be viewed as a supply and demand translation.

First off, supply and demand is nowhere without the choices in which the consumer makes.Economic choices in life are made every single day within the realms of supply and demand whether these choices be made within buying a product within a business, purchasing a car, going on vacation, or even just going to the movies; there can not be one without the other and our everyday choices are evidence of supply and demand. Without the purchase we would not have the resources to buy and then to sell and in being so, it is evident that without a process of economics we would not be able to purchase, sell, or even trade. What comes in the way of supply and demand?

Scarcity is the answer. Scarcity is a term within economics that describes a situation where there are not enough products available to satisfy people's needs or wants, and it is built upon two different standing ideas which are: There is no limit to what we want and there is a limit to our ability to produce goods and services that will satisfy our wants. In short, scarcity always exists within the realm of economics. Scarcity simply opens the door for the human mind to choose that which they want most which then may lead to getting one thing to leave the other behind and then supplying that which was demanded. Without the option to choose what we truly want in life there is no room to supply and fulfill that which is sought after.

Lionel Robbins defined economics as "the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." This statement truly captures the meaning under the concept that "All of life is Economics" because there are alternative uses to every decision made in life in relation to the spending of our money and the supply and demand we have within the ideas and purchasing of products. In relation to my contemplation of my future education and career goals I have a more thorough understanding of that which defines economics as the foundation for life. The choices I make for college may be determined by one having an excellent medical program yet it is out of state and one may be a stone throw away from the beach yet may not offer the strict major that I take interest in. Economics is based upon the trade-offs of life and the things that you will sacrifice to obtain one goal over another.

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