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Economics in our world

By Anya

What is economics?

Economics is a social science concerned with the manufacturing, distribution, and consumption of goods and services. Economics is more then numbers it is an economy There are three key elements to this study: description, analysis, and prediction. Economics deals with the description of economic activity. But there are seven basic concepts of economic.

  • Scarcity:

  • Transferability:

  • Forms of Wealth:

  • Individual Wealth:

  • Social Wealth:

  • National or Real Wealth:

  • International Wealth.

Economics affects our every day lives in both obvious and subtle ways. From an adult perspective, economics frames many choices we have to make about work and activities for pleasure, consumption and how much to save. Our lives are also influenced by macro-economic trends, such as inflation, interest rates and economic grow. But for kids it's broken down much more simply. As kids we know about needs and wants. Like we might want a new toy but we might need some thing else. Even if Mom and Dad provide this for us we still might have to make a choice.

You might ask why is economics important in life. Economics can prepare you for a job that has to do with numbers. Also with using your analytical skills and problem solving skills. Here are some real world examples of how we use it.

  • Example 1 – Opportunity Costs. Opportunity costs refer to the benefits of a individual or an business loses out when it chooses another choice

  • Example 2 – Sunk Cost

  • Example 3 – The Trade War

  • Example 4 – Supply and Demand

Common career paths for economics graduates include:

  • Financial risk analyst

  • Data analyst

  • Financial planner

  • Accountant

  • Economic researcher

  • Financial consultant

  • Investment analyst

If I had an interest in one it would be accountant. Accountants track the flow of money for businesses and individuals. Economics helps setting accountability for businesses. Also economics helps in the stock market to show when there has been a rise in inflation.

Now for the million dollar question. How do I use it in my personal life as a homeschooler. It's pretty simple. A few weeks ago I was at the store. I had just made some money. And I wanted to spend it. Now I was presented with a choice. Either I could save my money and go do something with my friends and use that money. Or I could spend the money at the store and just miss out. Back then I didn't even realize that I was using economics right then with needs and wants But I was. That's why economics is one of the most important things in life is because it helps determine between needs and wants. And many many other things.

Sources that I used



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