Who snudy economics

1.What kind of science is economics?

First of all, economics is a social science that helps to explain the secrets of how people make their living, enterprises earn their profits and societies achieve their goals.

2. What does economics explain?

economics helps to explain the secrets of how people make their living, enterprises earn their profits and societies achieve their goals.

3. Why are people’s lives concerned with the economy as well as with economics?

Most of our conscious life is directly concerned with the economy and economics, one way or another. If we want to get a job we have to enter the economy or in other words, to enter the market for labour. If we want to buy food or clothing we go to the economy or, to put it another way, enter the market for a particular commodity. We all make economic decisions every day of our lives and economics helps us improve the decision-making process*.

4. What economic issues do we meet with every day of our lives?

When reading newspapers, listening to the news, surfing the Internet, or just speaking to our friends, we meet with economic issues that have an effect on us, our friends and family as well as* our society. These important economic problems do with a large number of questions including:

• Why do financial crises occur?

• What are the consequences of a nation’s large budget deficit?

• What are the economic effects of emigration from Ukraine?

5. Why do these economic issues affect us?

When reading newspapers, listening to the news, surfing the Internet, or just speaking to our friends, we meet with economic issues that have an effect on us, our friends and family as well as* our society.

6. Why is studying economics worth people’s effort and time?

Economics helps answer these and a great many of other questions we can’t help* dealing with in a contemporary society – allocation of resources, inflation, unemployment, discrimination, economic growth, pollution and poverty. Thus, studying economics is worth our effort and time as it enables us to improve our own as well as a nation’s welfare.

7. Why do people have different reasons to study economics?

When it comes to* reasons of studying economics they are as different as we are and the ways it helps us individually change from person to person.

For some of us, economics, first of all, develops an analytical and clear way of economic thinking about all kinds of things that can be applied to a variety of different fields. For others, economics teaches how to gain a living and helps to realize where our money comes from and goes in and how to manage money we get.

8. What does economics mean for different people?

For some of us, economics, first of all, develops an analytical and clear way of economic thinking about all kinds of things that can be applied to a variety of different fields. For others, economics teaches how to gain a living and helps to realize where our money comes from and goes in and how to manage money we get.

9. What does economics enable us to do?

It enables us to separate facts from emotions, examine and track cause and effect relationships* carefully. Economic reasoning also helps to evaluate the advantages and disadvantages of choices we make in order to gain our aims and deal with a wide range of economic matters intelligently.

10. Why does economic reasoning become a part of a contemporary society’s everyday life?

Economic reasoning also helps to evaluate the advantages and disadvantages of choices we make in order to gain our aims and deal with a wide range of economic matters intelligently.

11. Why does economics teach people how to gain a living?

economics teaches how to gain a living and helps to realize where our money comes from and goes in and how to manage money we get.

12. Why should people in the world of business require knowledge of economics?

Businessmen require knowledge of business economics to achieve the highest production efficiency, draw the greatest possible profits with the least possible production costs*, meet competition in the market and as a result succeed in business.

13. What is a basic understanding of economics widely used for?

Besides, a basic understanding of economics is necessary if we want to understand national and international affairs and become responsible and knowledgeable citizens to affect the decisions of our political leaders by voting, directly or indirectly, on many points involving economic issues.

14. In what way do people use their basic understanding of economics?

Knowledge of economics also helps us to be efficient members of the workforce, better informed voters, consumers, savers, and investors in a democracy*. Thus, economic knowledge enables us to manage our personal lives, understand society, and make better the world around us.

15. Why does economics affect the quality of individuals?

Knowledge of economics also helps us to be efficient members of the workforce, better informed voters, consumers, savers, and investors in a democracy*. Thus, economic knowledge enables us to manage our personal lives, understand society, and make better the world around us.

16. In what way does economics help businessmen have profitable firms?

Businessmen require knowledge of business economics to achieve the highest production efficiency, draw the greatest possible profits with the least possible production costs*, meet competition in the market and as a result succeed in business.

17. Why is economics important for governments?

Economics is important for governments, as they want to come to good decisions about economic policies.

18. Why is economics considered so important?

Economics considered so important because it helps us to improve our lives in this difficult world

19. What are the ways economic knowledge helps us in succeeding in our material welfare?

Economic knowledge enables us to manage our personal lives, understand society, and make better the world around us.

20. How can learning of economics help the young people to succeed in preparing for life?

Economics can help the young people to choose a good profession in his country.

Scarcity and choice

1.What do people realize going through their lives?

Everyone through their lives has to make choices from among the things they would like to have.

2. What are economic goods and free goods? Is there any difference between economic goods and free goods? If yes, how do they differ?

Yes, they are. Most of the things we want or need are goods and services. Economists call them economic goods since they are scarce and have value to people. Other goods are not scarce – air, seawater, and sunshine –and called free goods. They are useful to people and available at no cost.

3. Why do all business units have to make their choices?

Since most of the things are scarce all business units, namely, individuals, families, businesses and governments, have to choose as to how to allocate and use them.

4. What does individual choice depend on?

Choices made by individuals and families depend on the size of their personal income, savings, wealth and ability to borrow.

5. What are governments and businesses limited by?

Businessenterprises and firms, in turn*, are limited by theirprofits, savings and borrowing power, and governments by their taxing and borrowing power.

6. What makes everyone choose?

7. What does the necessity to make a choice result from?

The necessity to make a choice results from the problem of scarcity of available resources.

8. What is scarcity?

For most people, scarcity is a fact of life. Scarcity means that individuals as well as societies want more than is available.

9. What problem does everyone in any society face? Economists say that there is no limit to the amount and kinds of things that people want but there is a limit to the resources, available to satisfy unlimited human wants. Thus, the problem of scarcity faces all people, businesses, governments.

10. Why does scarcity force all decision makers to arrive at best decisions?

Having limited financial resources school leavers can choose a full-time or part-time job as they can’t afford to get a university degree*. Business owners cannot hire all the workers and buy all the equipment and raw materials they require. Governments face some scarcity of finances despite their power to tax. Therefore, scarcity forces all levels of decision makers*, from individuals to society, to do their best to get the most from what they have.

11. How do economists explain the essential sense of scarcity?

The essential sense of scarcity is that everything we do has value. When you are doing one thing, you are using time and resources that cannot be used for the next most valuable thing you could have been doing*. The cost of doing more of one thing, then, is the value that is sacrificed by doing less of something else.

12. What is the opportunity cost?

Economists refer to the value that is forgone every time we do something as opportunity cost. In fact, all costs are opportunity costs. We commonly think of cost as the money we spend to obtain something. But spending money on one thing is giving up the opportunity to spend it on something else.

13. What is the money cost of going to university? Economists describe the money that those who choose university might have earned during their years of study as forgone earnings, but not the money spent on tuition and books. Thus, the opportunity cost of going to university is the goods and services represented by the money cost of the education, plus the value of the forgone earnings.

14. What are forgone earnings?

15. Whydo anyone who goes to university face the opportunity cost? What costs do the opportunity cost involve?

16. Why does the cost of doing something have nothing to do with spending money in most cases?

17. Why should people compare benefits before making their decisions?

18. What are the two sides of opportunity cost?

19. Why are scarcity, choice and opportunity cost interrelated?

Business organization