the importance of economics
1.
Because we live in an economy it is important to study economics, simply because economics affects everyone. We are part of an economics system, where every day we engage in economic activities. Economics helps us to appreciate that the earth’s resources are limited in comparison to human beings want, which are infinite, and constantly changing along with technology and people’s taste and preference. This excess of wants over what can actually be produced with the limited resources, brings about the basic economic problem of scarcity. Scarcity brings about the choice of what to produce, how the commodity is to be produced and who gets to consume the finished good(s) and/service(s). Economics is important to those involved in economics activities which are everyone: individuals/households, firms/businesses and government when it comes to making these choices. It helps us when making such choices, from the businesses trying to make a profit to the consumers seeking to get more for less and the government trying to obtain welfare for its citizens.
Economics helps us when making decisions about the allocation of such scarce resources so as to best satisfy the needs and wants of individual within an economy. Without going too much into it, economics can calculate the degree of inequality within an economy and helps us understand ways and measures taken to reduce inequality. It also addresses the problem of poverty, how to identify types of poverty, causes and effects of poverty, those most susceptible to poverty and ways to alleviate poverty.
2. What type of economic system does Trinidad and Tobago have? How does the type of economic system impact what they produce, the quantities and for whom they produce it?
Trinidad and Tobago has a mixed economic system, this type of economic system combines the features of a planned economy and a free market economy, therefore; economic decisions are taken via the price mechanism system and some
Because we live in an economy it is important to study economics, simply because economics affects everyone. We are part of an economics system, where every day we engage in economic activities. Economics helps us to appreciate that the earth’s resources are limited in comparison to human beings want, which are infinite, and constantly changing along with technology and people’s taste and preference. This excess of wants over what can actually be produced with the limited resources, brings about the basic economic problem of scarcity. Scarcity brings about the choice of what to produce, how the commodity is to be produced and who gets to consume the finished good(s) and/service(s). Economics is important to those involved in economics activities which are everyone: individuals/households, firms/businesses and government when it comes to making these choices. It helps us when making such choices, from the businesses trying to make a profit to the consumers seeking to get more for less and the government trying to obtain welfare for its citizens.
Economics helps us when making decisions about the allocation of such scarce resources so as to best satisfy the needs and wants of individual within an economy. Without going too much into it, economics can calculate the degree of inequality within an economy and helps us understand ways and measures taken to reduce inequality. It also addresses the problem of poverty, how to identify types of poverty, causes and effects of poverty, those most susceptible to poverty and ways to alleviate poverty.
2. What type of economic system does Trinidad and Tobago have? How does the type of economic system impact what they produce, the quantities and for whom they produce it?
Trinidad and Tobago has a mixed economic system, this type of economic system combines the features of a planned economy and a free market economy, therefore; economic decisions are taken via the price mechanism system and some