Economic concepts that economics graduates should know!

   

   
       Economics has an impact on every moment of our lives. Basically, we need to think economically when making decision whether can benefit us in the future or not. Hence, an understanding of economics is vital to our lives. Now, we will discuss some economic concepts.

1) Scarcity
Everyone has their own preference. Therefore, problem such as scarcity arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.

2) Supply and Demand
Let say that people need to have winter clothes since winter season is coming. Thus, the demand for winter clothes increase and firms will supply more because firms can gain more profits. Because of that, a lot of firms start making winter clothes and after a few production cycles, the price of winter clothes will plummet. Hence, people will demand for clothes that suitable for spring season and again, firms will compete to sell and produce more clothes for spring collection.

3) Costs and Benefits
In any situation, consumers will decide to buy products that benefits them. Besides, they are willing to pay for the products that less costs but in good quality. Producers also will make the same decision. They will produce products that can benefits them means that they can get a lot of profits by selling the products. Thus, producers will always produce products that are highly demanded and less costs.

       In conclusion, I hope that everyone can understand some economic concepts that mentioned above and try to relate it when making any decision. Ask yourself whether the decision can provide incentives to you or do the products give you satisfaction. By that, I think you will not regret of the choice that you make. To be master in economics, you should know the basic language of economics and thus you can imply when working as an economist.
Thank You


Andrew Beattie, "5 Economic Concepts Consumers Need To Know",  http://www.investopedia.com/articles/economics/11/five-economic-concepts-need-to-know.asp