Wednesday, April 13, 2005

Economics's all around us!

We generally think of economics as decisions concerning money. But we make economic decisions every day. If I've been invited by two different people to attend a party,
I will have to make a economic decision. On one hand Fred's party may have the best looking females, while Jim's party may offer a chance for me to sing karaoke. Neither party can provide both the females and the karaoke. So I am forced to decide which of my wants, is most important. That's the whole idea behind economic decisions, there are not enough resources available to the world, to satisfy everyone's wants. So, the freedom of the market allows us
to get the resources to where they are most needed.