Economics4Everyone

Why Think about Economics?

© Doug Cardell 6/30/21

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 is the study of the use of finite resources which have alternative uses. True, money is that kind of a finite resource but so are time and material assets and reputation and joy. Every decision is the evaluation of a trade of one thing for another. 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 improve 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, time. There are alternative uses for a finite resource. It is an economic decision.