Login with Facebook

An Overview Of Economic Studies

There is so much discussion around what economic is and what it is not. Understanding the term needs one to know how scarcity affects consumer decisions. Hence, economics can be easily defined as the study of how people react when faced with scarcity. It is all about the decisions people make in such a scenario. These decisions may be individual, family, business, or society. When you consider your environment carefully, you will notice that scarcity is all around. It is one of the faces of human existence. Scarcity is human wants in terms of goods, services, and resources exceeding what can be provided. There are all types of resources around us, including labor, tools, land, and raw materials that are used in the production of human needs.

Resources play an important role in the production of what we need to survive. However, these resources exist in limited supply. When you dig out oil, for instance, it takes a long time for more oil to build in the same area. We all know how long it takes for fossils to turn into oil. And most importantly, we understand the importance of oil in the modern world. When scarcity hits, it affects time- everyone, the rich and the poor, all who have 24 hours in a day to get the goods they desire. At this any given time, there is only a finite amount for resources for use. This is true, especially when talking about natural resources.

Think of this example. In 2015 the U.S Bureau of Statistics recorded that the labor force contained 158.6 million works. The whole United States sits on an area of 3,794, 101 square miles. This area contains a vast number of important resources, which are, however, limited. And because of this, the production of goods and services becomes limited. Now, since humans want for the large number of works mentioned above seem to be infinite, there is no way we can avoid the issue of scarcity.

Now consider this too, everyone needs food to eat. They need a nice place to live, access to healthcare, and other things. However, some people are hungry, homeless, and in need of healthcare, just to mention a few. This happens because of scarcity.

To understand economics, it is vital to know what scarcity is and how it affects human beings. The best way to know the problem with scarcity is to consider the things we consume daily. These include transportation, shelter, food, healthcare, and entertainment. We have to pay for these things. And to get the money to pay, one must be ready to work for them. And yet, many people don’t have enough to afford these things. It is all because we have limited resources.

Dealing with Scarcity, and Division and Specialization Of Labor

As stated above, economics is directly linked to scarcity. This is why, for a society to grow, they must learn how to handle scarcity. It is the decisions we make during this time that make the change. Every society makes choices about the use of natural resources. In the homes, people must make decisions whether to use savings on a car or for a vacation they have desired. Cities must decide where to focus their energy, in the police and fire protection, or in the schools. A country must decide where they want to focus their investments in the military, infrastructure, schools, or health sector. Unfortunately, there is never enough money to go around in these things.

But why do we not produce these things ourselves, from our home? Simply, most of us don’t know how to, and we don’t have the resources to make these things. As an economic student, you will come to learn that the obvious choice is not always the best. It teaches you to have a different way of thinking and look at things more critically. In the old days, individuals knew how to do things with their own hands. They could build homes, grows, go hunting, and repair their equipment. Many of us today don’t know how to do such things, not because we don’t want to but because we just don’t see the need. Adam Smith, in his book The Wealth of Nations, states that the reason is because of “the division and specialization of labor.”

The modern study of economics in schools was introduced by Adam Smith (1723-1790) with the publication of the book mentioned above. Today, many authors have written on the topic in which Smith introduced the division of labor. This term means the way a product (good or service) is produced and divided into different tasks that are done by varying entities, as opposed to one person doing everything. 

Smith uses the recount of how many tasks went on during the making of a pin. First, there is drawing on a piece of wire, cutting, straightening, making ahead, packaging, and supplying, among other things. in this case, there are more than 18 different works that were necessary for the pin. This means a single pin may have gone through the hands of 18 people before it comes out on the market. Hard to believe, right? Well, this is the reason why the division of labor has become very crucial for economic development.

To understand economics, note that modern business understands how to divide tasks. Even the smallest business, like a restaurant, must divide and share tasks fairly to achieve the desired output. Someone who can work well on in the kitchen is left to cook where serving is left to the waiters. There are a greeter and the door, janitors to clean the place, business managers to control the whole business, and a clerk to handle cash flow, among other tasks. And we have not even mentioned the interaction between the restaurant and other entities like suppliers and neighbors in the same business building. In a large organization, division of labor is more defined. This is critical even for a government, which needs different people to run its operations.

Division of labor increase production. When a group of people works together, each in their area of specialization, they have higher chances of success. According to Smith, there are three reasons why this is true:

- Specialization allows works to focus on a specific part of the production process. Since people have different skills, talents, and interests, focusing on a particular field, allow them to do what they love. Such qualification can be because of academic choices, which may shape interests and talents. For instance, those who qualify with medical certificates become doctors. In some cases, specialization is affected by geographical area. For instance, it is easier to become a wheat farmer in Dakota and success than in Florida. On the other hand, one can succeed in the tourism business in Florida than they would in Dakota. In other words, when people do what they are specialized in, they become more successful.

- Specialization in specific tasks helps people learn faster production with higher quality features. This is very true and important for many workers in any sector. It is all about developing core competencies to create the best product.

- The third reason that Smith gives is that specialization allows firms to tap into the benefits of economies of scale. This means, for most products, the average cost increase with an increase in production. For example, if a motorbike company produces one thousand motorbikes per year, the cost of production becomes high. But when they make 50 000, it can create an assembly line with each worker performing specialized tasks, hence reducing the production cost per device in terms of time and cash.

The division of labor has been one of the main approaches to handling the problem of scarcity. And this results in a better economy, which is what every nation seeks.

Specialization, trade, and Markets

We can only say specialization has been successful if workers use their pay to but the goods and services they needed. Hence, trade is required for specialization to be successful.

Do you play music a lot? And do you know anything about electronics and sound systems? Well, no. All you need is to, but an iPod or MP3 player, down the music and you are good to go. You don’t need to learn anything about artificial fibers or how sewing machines are constructed if you need a jacket; you just get one and put on.

This means consumers don’t need to spend time acquiring knowledge about how certain things are made. Instead, the markets allow one to learn only the necessary skills and then use them to offer and receive goods and services. This is what contemporary society has such a strong economy. It is all in the way division of labor has been effectively achieved.

The importance of studying economics

Economics is a vast subject. It needs one to be very careful and understand the simplest things that determine the economy of a country. And as we have seen, scarcity is a single term that can be used to explain economics in the easiest way. But it is more important to know what studying economics is important today, more than ever. First, note that economics is not a bunch of facts and ideas to be memorized. Even though it carries many great concepts to be learned, it is better to look at it as a collection of questions that need answers. Also, one can look at it as puzzles that need to work out. This way, it becomes easier to dig deeper into the reasons for economic studies and how it affects humanity in general. Economics gives individuals the tools to work with and resolve these puzzles.

Every problem nations and the whole world is dealing with right now, from global warming to world poverty, and from world conflicts in Syria, Somalia and other areas have a link to economics. And every human being has a role to play in resolving these issues. When they strike, funds are directed from other important things and take to resolving such cases. And if you want to be part of the team that makes the difference, then studying economics should be one of your desires.

Economics is one of the most important aspects of citizenship, and it can never be overemphasized. This is why citizens are asked to vote intelligently on budgets, regulations, and any other laws that affect human life. In 2012, for instance, there was a “fiscal cliff” in the USA that almost brought the country to a standstill. Many people did not know the issues that were involved, but as you may have already guessed, it was money. Issues with the economy of a country, citizens suffer the most with the scarcity of commodities and surging prices. They need to learn and understand how the government spends its revenues in terms of development, which includes the creation of more job opportunities.

The study of economics leads to the creation of individuals who can challenge the causes of action. For instance, when there is a misappropriation of funds by a government body, economic knowledge can help you take a stand and ask the right questions. It is all about having an idea of what you are talking about and being able to express yourself. This, of necessity, means economic is a career subject that contributes largely to the growth of the business realm.

Understanding the basics of economics makes one a well-round thinker. When one reads, for instance, and article about national or global economic issues, they will be able to evaluate a writer’s argument and include their views based on facts. Also, they can find new ways of thinking about contemporary issues that affect economic growth.

We must have economists in the world. These are individuals who contribute largely to the direction of the global economy. When you start a company, you may not have economic analysis knowledge, but you can hire the service of a person who does so that they can help you create a more stable business. Economics runs the worldEconomic Studies, and those who understand how it works are luckier because the skills help them to tap into opportunities others may never know about.

Author: James Hamilton


Comments

Need a custom
essay?

We will write it for you.
Order now

Free Essay Examples

Free essays:

An insight into the error-correction models
All you need to know about management discipline?
A historical overview of Financial Crises
All you need to know about reaction kinetics?
Basics the Game Theory in Cryptoeconomics
Business innovation ideas for making money
Biosensors for cancer diagnosis
Business Analysis: Pricing strategies and Demand Curve
Contracting with Moral Hazard and Adverse Selection
Conflict management in an organization
Can social media help overcome the problem of illiteracy?
Cultural heritage of indigenous people.
Digital Illiteracy
Determinants of business cycles fluctuations
Determinants of Unemployment and Inflation
Different tissues of the body
Economic Analysis of Market Structure
Expected Utility
Everything you need to know about workplace diversity
Efficiency and Market Equilibrium
Factors Affecting Purchasing Behavior
Financial Statement Analysis
Factors Influencing Interest and Exchange Rates
Fiscal and Monetary Policies in Response to 2008/2009
Game theory in microeconomics
Globalization: definition, causes, social impact and risks
Gene expression: what it is and why it is important
Global environmental issues
How to conduct economic research?
How to define the Enterprise Value
How cancer is developed - Cancer biology
How can financial illiteracy harm you?
Illiteracy in the USA
Importance and seven principles of quality management
Intermediaries and Government in Financial Crisis
Introduction to Econometric Application
Journalism: What is News?
Journalism: Broadcast media and Television Presenters
Journalism: Sources of News
Journalism and Law
Key Determinants of National Income
Key Factors That Affect Pricing Decisions
Kinetic models in biology and Related fields
Know about the different forms of traditional African dances
Latest technology trends
Latest dance trends
Methods of labeling of nucleic acid that enable their detection
Macroeconomics: International Economic Issues
Neuromuscular disorders
National Economies, Fluctuation, and Responses to Fluctuations
Neurotransmitters: what they are and different types
Nanomedicines to target tumors
Organizational motivation and its effects
Overcoming Hiring Challenges for Nonprofit Organization
Protection of cultural heritage in times of war and peace.
Principles of Corporate Governance.
Risk Sharing in Insurance and Asset Markets
Risk and the value of information
Reverse discrimination.
Role of media in wartime.
Schizoaffective disorder: how to live better with it
Segregation in the US.
Stages of the Consumer Decision-Making Process
Structure and function of blood vessels
The Game Theory in Social Media
Theories of Public Policy
The Economics of Uncertainty – Introduction
The different medical imaging techniques
Understanding Auctions and Auction Theory: Part 2
Understanding Auctions and Auction Theory: Part 1
Use of Machine Learning in Econometrics
Understanding Public Policy
Various theoretical perspectives of sociology
Virtual reality, what it is and how it works
What is Immune System and Immunotherapy?
What are the methods of valuation of companies?
4 Facts about Origin of Mathematics!
5 techniques to create an animation
10 emerging technologies according to World Economic Forum
10 strategies to maximize corporate profits
3d Model Of Building
6 Medical Technologies that revolutionized the healthcare in 2020
All you need to know about the ACA Code of ethics
Architecture and Democracy: An Introduction
Architecture and Democracy: Democratic Values
Architecture and Democracy: Democratic Procedures
All You Need to Know About a Synthesis Essay
An essential guide to understanding Film Theory
Application of Artificial Intelligence in Cyber Security
Applications of electrical engineering
Augmented reality: what it is, how it works, examples
Advantages And Disadvantages Of Social Networking
All you need to know about Cryptography
Applications of astrophysical science
All you need to know about architecture engineering
Applications of geological engineering
Artificial intelligence and medicine: an increasingly close relationship
An insight into Computational Biology
ACA code of conduct
A Rose for Emily
Applications of Mathematics in daily life
Architecture mistakes to avoid
All you need to know about Toxicology
All you need to know about Holistic Medicine
All you need to know about linguistics
An introduction to Linguistics and its subfields
All you need to know about Anxiety disorder
All you need to know about Drones
A Brief Insight into Political Science
Assumptions related to feminism
All you need to know about Byzantine emperors
All you need to know about labour economics
An insight into xenobots -the first-ever robots
An ultimate guide about Biomaterials
A Comprehensive Introduction to the Mona Lisa
Analysis methods of Transport through biological membranes
An ultimate guide about biochemical reactions
Analysis of brain signals
Artificial Gene Synthesis
Application to synthetic biology of CAD methods
All you need to know about metabolic pathways
Applications of BIOMEMS
All you need to know about the epidemiology
Asian vs. western leadership styles
All you need to know about Smart prosthesis
Analysis of Economy: Output of Goods and Services (GNP), and GDP on Economic success
A Guide to Pricing Strategies
An Overview Of Economic Studies
Analysis of Fiscal and Monetary Policies
Analysis of Business Cycles
Analysis of Consumption and Investment
A Look into Regression Analysis
Analysis of Household's Consumption and Savings Behavior
All you need to know about Capital Budgeting
All you need to know about risk management
Art looted in wartime.
Appropriate use of Data in Economics
All you need to know about reaction kinetics?
A historical overview of Financial Crises
All you need to know about management discipline?
An insight into the error-correction models
How to Write a Personal Essay
Housing Needs in America
How to Write a Description Essay
How to Create an Excellent Scholarship Essay?
How to write a cause and effect essay
How to Hire the Best Essay Writing Service Provider?
How to Write a College Application Essay?
How to get the most out of your English lectures
How to write Expository Essay
How to succeed in your psychology class?
How to Write an Academic Essay in the Shortest Time?
History of Journalism
How Different Sectors are Using Artificial intelligence (AI)
How to write an informative essay
How to deliver persuasive essays?
How to Give a Convincing Presentation
How to write an essay on leadership?
Historical Art Still Around Today
Humanoid robot: what it is, how it works and price
History of Chemistry
Healthcare Advanced Computer Power: Robotics, Medical Imaging, and More
Healthcare AI: Game Changers for Medical Decision-Making and Remote Patient Monitoring
How to understand different types of English
How to Cope with Chronic Pain
How African American choreographers and dancers have influenced American dance
How mobile robot can do in logistics or in production
How To Become a Successful Entrepreneur
History of the Philosophy of Feminism
How is the climate changing?
How to Track Your Content Marketing ROI
How to Gun control In the USA?
Historical and contemporary role of labour in the modern world
How breast cancers are classified?
How the cells of our body communicate?
How the Lymphatic System Works?
How Digestive System Works
How to complete your capstone projects effectively?
How to write a research project
Healthcare technologies that help patients with better self-management
How to choose the topic of the senior capstone project
How to make your business survive at economic crisis
How can immigrants blend in the American society?
How does the economics of war affect society?
Hate speech on social media.
How to Build an Economic Model
How to start a healthcare startup?
How can financial illiteracy harm you?
How cancer is developed - Cancer biology
How to define the Enterprise Value
How to conduct economic research?
Introduction to Urban Studies
Importance of dance in education
InMoov: how to build an open source humanoid robot
Importance of KYC verification to making the Blockchain secure
Importance of Rhythm
Importance of dance student evaluation
I/O control methods -types and explanations
Identity theft: what to do?
Introduction to Utilitarianism
Importance of 3d Modelling in Architecture
Importance of online journalism
Image processing in medical diagnosis
Introduction to USA Politics
Introduction to Comparative Politics
International Relations as a Major in Political Science
Importance of modern trade policy
Introduction to Journalism
Introduction to Writing a TV Script
Introduction of Microfabrication techniques
Introduction to Microeconomics
Interaction of Consumer and Firm Choices in Markets
Importance of corporate sustainability
Issues in International Monetary Macroeconomics
Introduction to Statistics and Data for Economics
Introduction to Data and Probability for Economics
Introduction to the Game Theory
Introduction to Econometrics
Introduction to Economic Information
Introduction to Market Equilibrium
Introduction to Economic Models and Application
Introduction to Empirical Research
Introduction to Econometric Data
Importance of Critical Thinking, Principles, and Goals
Introduction to Identification and Causal inferences
Introduction to Econometric Application
Intermediaries and Government in Financial Crisis
Importance and seven principles of quality management
Illiteracy in the USA
The Looming Energy Crisis in America
Top benefits of performance-based engineering
The More Languages You Know, The More Times You Are a Man
Things to consider while writing an Argumentative Essay
Top Ways to Improve Your Academic Writing Skills
Tips to Excel in Creative Writing
The origins of films in the early 19th century
Top career options in Architecture
The Elevator Pitch
Top finance trends 2020
The basic Structure and functionality of robots
The Way to Success
The election system of the President in the United States of America
Two-party System in United States of America
Top trends in urban design
The history and theory of African American filmmaking
Top benefits of creative writing
Tinnitus Guide: Common Symptoms and Treatment Options
The language of dance
The digital image processing management
Top famous politicians of the World
Top methods of political science!
The history of the feminist movement
The blood flow in cardiovascular system - Biofluid Mechanics
The best of Leonardo Da Vinci
The Structure and Function of Macromolecules
The structure of cell: a research on the bricks of the human body!
Tissue and organ construction: Adhesion and recognition between cells
The kinetics of the transformation processes
The Modeling of Biological Systems
Tips for writing a great thesis statement
The Defense mechanisms against infections
The impact of the technological innovations in medicine
Top journalism trends to know about
The relation between mass media & politics
Theranostics: Diagnosis and Care through Nanoparticles
The practical Applications of X-rays
The applications of Ultrasound in medicine
Transfer mechanisms of genetic information in Bacteria
The regulation of cellular metabolism in the diagnosis
The Principles of MRI Contrast agents
The technical basis of optical coherence imaging
The New Media: Emerging Trends
The Structure of Interest Rates and the Yield Curve
Technological perspectives and reflections of neural engineering
Types of bioreactors and their applications
The Role of Government Policy in Improving Economic Outcomes
Types of corporate responsibility
The Role of IMF in International Monetary Macroeconomics
Tools for investment decision making
The concept of Organizational Culture and its applications
The Conduct of Monetary and Fiscal Policy
The Basics of Financial Accelerator Models
Tips for labeling medical devices- Medical Entrepreneurship
The different medical imaging techniques
The Economics of Uncertainty – Introduction
Theories of Public Policy
The Game Theory in Social Media
What is a Definition Essay?
What are diagnostic essays?
What is the relation between art structural engineering?
What is a Narrative Essay
What are robotics and intelligence systems?
What are the benefits of studying health sciences?
What is artificial intelligence and why it matters?
What is comparative Literature?
Why study neuroscience
What is Wi-Fi and how does it works
What is French history famous for?
What are Humanistic Studies?
What is covered in Biophysics?
What is modern journalism?
What is Virtualization? Benefits & Applications
What are modern public relations?
What is plasma physics?
What is teacher preparation?
What is rapid prototyping for 3D printing?
What is contemporary European Politics?
Why should you learn American Ballet?
What is engineering physics?
What is the purpose of African American Literature?
Ways to learn the Rhythm
What is digital art used for?
What are Enzymes and how do they work
Who is the father of political science?
Why Study Political Science - Job?
What is the Philosophy of Feminism?
What is a quantum computer?
Ways B2B Startups Streamline Their Conversion Strategies
Why do biomedical signals need processing?
What are the long term effects of climate change?
Why study labour relations
What is Holoprosencephaly?
What is antisocial disorder?
What are the important principles of evolution?
What is the cytoplasm and its function?
What is biopolymers?
What Makes a Good Leader
Women empowerment in modern generation
What is the history of political thought?
What is Gene recombination
What is synthetic biology
What is business cost analysis?
What is Inflation
What are the consequences of unemployment?
What is lithotripsy and its types?
What is transition elastography?
What is the purpose of deep brain stimulation?
What is a Brain-Computer Interface (BCI)
What is neuroethics?
What is Market and Supply and Demand
What is optogenetics?
What are the techniques to record brain activity?
What happens if the interest rate increases?
What is immunotherapy?
What is the economic role of the financial market?
What are the factors behind illegal immigration?
What is the lymphocyte activation?
What is financial market and its types?
What is the structure of financial markets?
What are the methods of measuring business performance?
What is the Credit market?
What is business ethics and code of ethics
What are the Causes of financial instability?
What is MBA with Concentrations
What is regenerative medicine?
What is Population ecology?
What is Microfinance: evolution, and practices?
What is biotechnology and its applications?
What are Workplace diversity and its benefits?
What is the difference between a leader and a manager?
What Is Branding and best branding Business strategies?
Why are microelectronics important?
What are biologic drugs.
What is the Foreign Exchange market?
What is the role of scientific research in times of crisis?
What are the risks of international trade?
What is financial management?
What is gene therapy?
What is education economics?
What is regression analysis, and why should you use it?
What Is Technology Marketing And How Should It Work?
What is Management Accounting
What are the methods of valuation of companies?
What is Immune System and Immunotherapy?