The Basics of Economics

Economics is the study and understanding of the economy or the system of government and people that deals with money and financial things. Because the government officials did not understand my report about the economic reforms that are supposed to help stimulate the economy, I have decided to teach them about few concepts about the economy and how it works and how they can benefit from me and use these concepts to make wise and good decisions to stimulate the economy.

The first thing I decided to teach the government officials about is economic freedom. People highly care about their economic freedom, thus, the government needs to give the consumers or people some freedom. People want to make their economic choices; their job or occupation, what they are going to do with their money, what to produce and how to produce it. Another important concept concerning the people is economic equity; people greatly value equality. Treating people fairly without discriminating between them is an important rule. Thus, discriminating on the basis of age, sex, race, religion, or disability is illegal. An example for economic equity would be minimal wage; the lowest legal wage that can be paid to a worker. People who are not very rich get affected dramatically by inflation; therefore, people prefer to have price stability. Price stability is important because inflation can damage a lot of business and people, discouraging them to get in business and this lead the people to poverty and hating the government and doing riots and strikes. Inflation can also at the end result in increasing the percent of unemployment. Full employments is when most of the society or nearly all of it are employed or have jobs, people wish for this but it will never properly be implemented.

Competition is the result of having freedom in an economic system. Competition is the opposite of the monopoly; competition is when the sellers struggle to attract the buyers or consumers. Competition exists because the individual entrepreneurs have the freedom to choose their products. Competition benefits both the seller and the buyer. Many people recognize scarcity and they want to know how to deal with it. People know that if the resources are wasted then the number of products will decrease and thus efficiency in economic decisions is a definite thing. The government must be efficient in solving the people's problems. People hope for the economic growth to increase because everyone wants to have a luxurious and enjoyable life.