Economics and the Effects on Our Society Essay

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Economics and the Effects on Our Society

Post University

Maria Krug

BUS501

January 13, 2013

Economics and the Effects on Our Society

A crucial topic of discussion that we hear among our fellow co-workers, family, friends, or colleagues is how the economy is affecting our daily activities of living. When stating this, there is much debate and question as to how our money is valued and the effects it poses on various aspects of our purchases and savings. According to the Merriam-Webster Dictionary, economics can be defined as, “A social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services” (Merriam-Dictionary,
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Production is examined closely to determine how society will be able to benefit and what resources will cause it to fall. (Investopedia)

Growth: Economic growth controls and regulates production and consumption of resources that a society uses. Based on market values, the economy can rise or fall. With PPF, there can be economic growth if resources are allocated efficiently. (Investopedia)

Opportunity Cost: From an economic standpoint, this creates choice of different needs that an individual or society may make in order to have one good or service rather than another. The value of resource determines the choice of opportunity that person(s) will have. (Investopedia)

Trade: From a micro or macro-economic standpoint, trade focuses on which resources are more important in value; which good and services will benefit the economy if they are kept or traded.

Supply and Demand: In economics, supply refers to how much of a resource the market can provide for the society, while demands refers to the need or quantity of good and services buyers in society want. (Investopedia)

Elasticity: When a consumer is in greater need of resources, there is a smaller chance for price change. However, when goods and services are in less demand as a necessity, price change will not affect the economy as much. Elasticity is based on the change of supply and demand of goods and services that a society is in need of. (Investopedia)
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