An Outline of Economics (Essay Sample)

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An Outline of Economics
An economic student perspective about national and global economic issues is broadened. The study of the economy helps individuals and more so student to manage resources in the best way possible. Resource allocation begins right from an individual level through the national level and into the global arena. Each year, grandaunts from various universities around the world with knowledge of economics find their way into the market. One can only appreciate these individuals by acknowledging the amount of expertise and skills impacted on them during their college year. Students are taken through a number of topics concerning economics as discussed in this article.
The world continues to experience scarcity of resources, and as a result, there is conflict for resources among nations and among tribes within nations. In economics classes, students are taught how best to allocate resources, however small. Economists argue that, within any given market, each good or resource has an alternative. This is defined as an opportunity cost,choosing to forgore the most desired good in order to get another item. Students relate investment in their education as the best opportunity cost. One believes that by choosing to forgore the little pleasures of teenage hood and youthful age and instead goes to school; one is in a better position to find a good job in the future. Second, the American economy is an integral part of the global economy. Any change in the American economy will have an impact in the global economy. The US has a very large and varied economy. The Gross Domestic Product is how countries wealth is measured. As at 2007, America’s economy comprised of 20 percent of the global economy. However, despite all this economical muscle, the American economy has faced numerous challenges some of which include the great depression. During this period, a number of Americans lost their homes to lending institutions because of failure to service their mortgages. Despite all these problems, students of economics within US institutions still believe that it is impossible for the American government to go bankrupt. Third is the issue of pricing and price ceiling. For quite a long time consumers have been left at the mercies of entrepreneurs. Some of them have set very outrageous prices on a number of basic commodities. While consumers would demand that the government set price ceilings, economists would vehemently oppose this action.
According to economists, if the government sets a price ceiling, then there would be an upsurge in quantity demanded but a decrease in quantity supplied thus creating a market crisis. Alternatively, if the government sets a price floor, there would be an upsurge in quantity supplied and a decrease in quantity demanded thus leading to a glut. A good number of individuals including students, who are victims of inflated stationery prices, wish that the government would offer some incentives/subsidies to suppliers to reduce on the cost of goods. Matters of dem...