What Is Economics?
by Dr. Doug Cardell
Economics is the study of choices. Every decision anyone has ever made or ever will make is an economic decision. Most people think economics is about money, but it’s much more than that. Economics in more formal terms, is the study of the most effective use of finite resources with alternative uses. That is, it's about efficiency; how to get the greatest advantage from the limited resources you have available. True, money is a limited resource, but so are time and material assets and reputation and joy. Every time you make a decision you are evaluating the advantages and disadvantages of trading one thing for another.
For example, a choice between taking a walk after dinner and watching television is an economic decision even though no money or things are involved. Taking a walk may improve one’s health; it may enhance one’s sense of well-being but watching television may take one’s mind off the day’s problems or entertain one or let tired feet rest. Either way, a resource will be used up, your time. In fact, time may be your most precious resource since it is totally non-renewable. Therefore, your decision about how to spend your evening is an economic decision because you are seeking the most effective use of a finite resource that has alternative uses. It is about choice.
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