Economics Overview

Essay by zombat00High School, 12th gradeB, April 2005

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Overview Essay

Economics is the social science that studies the production, distribution,

exchange, and consumption of goods and services. The study of economics focuses on

how individuals, corporations, and societies choose to use the scarce resources provided

by nature and previous generations.

The first Goal that I learned about was Economic Efficiency which in economics

is the relationship between an individual's interests and the interests of the group. Under

some circumstances, there is conflict; under others, there is harmony between self-

interest and group interest. Once one understands the economic theory of consumer

behavior and the theory of the firm, one can come back to the invisible-hand question the

question of whether individual action serves the good of the group using the concept of

economic efficiency.

The Second Goal I learned about was Income Equity, which I found out, was

when a countries total output is distributed fairly. In my articles I saw how income was

gained and how it was lost, and the various effects that it had on our economy, and the

changes it had on our individual money.

Inflation and Price Stability is the average price of goods and services--in the

"cost of living." Inflation and the risk of inflation encourage certain types of spending

and investment decisions. A situation where inflation is low enough so that it no longer

affects people's economic decisions is referred to as price stability. The most widely used

measure of inflation is the consumer price index (CPI). It reflects changes in the price of

a representative "basket" of goods and services sold in Canada: food, housing,

transportation, furniture, clothing, recreation, and other items that Canadians buy. What I

learned was that the inflation rate is expressed as a percentage increase in average prices

over a year. For example, if the cost...