.passion.love.pride.

complex, but not difficult

Posted on: September 18, 2009

the study of the decisions a society makes concerning the production of goods and services, and how the society distributes these goods and services among its members.

some aspects lead to philosophical questions, while others involve a more technical analysis. many times it also involves value judgments, i.e. if it is worthwhile to make a particular choice.

DSC_0004 see, the focus is not micro. (:

economics, in dealing with behavioural science, is not empiral like biology or chemistry, and mostly theoretical. answers are often unclear, and simplistic in nature. however, it does provide us with a basis for making decisions, without which we would have none.

it is constantly evolving, and while it seems confusing – we must remember that it is the value judgments that people make that are different and appear chaotic, and these arise from differences in personal interpretation, rather than differences in theory.

The task of any economic system…is to use its scarce economic inputs in a way that best satisfies the needs and wants of the people of the society.

as you can see, economics does not take care of the scarcity of the inputs; and if the needs and wants of the people do not include the environment, there is no other control for that in this equation. the current system does not include the environment – how can that work in our world, where resources are finite and waste is ever-accumulating – and economics is central to the workings of this world?

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