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What Is Economics

In: Business and Management

Submitted By MARRIED217
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Running head: WHAT IS ECONOMICS

What Is Economics
Peter Martucci
University of Phoenix
Prnciples of Microeconomics
ECO/365
Michelle Kinnison
November 11, 2013

What Is Economics
Economics is the study of the production and consumption of goods and the transfer of wealth to produce and obtain those goods. In generic terms, economics is the basic fundamentals of how money exchanges make the world go around. Economics explains how people interact within markets to get what they want or accomplish certain goals. There are two main types of economics: microeconomics and macroeconomics. Microeconomics focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders. Macroeconomics, on the other hand, takes a much broader view by analyzing the economic activity of an entire country or the international marketplace.
In my everyday personal life, economics plays an important role with regards to a financial balance within our household. Everyday purchases such as groceries and gasoline for our vehicles are pretty simple to justify. Obviously when making purchases you want the best value for you money. But in all honesty, I am not the type of person who will drive six miles to the next gas station because I can save eight cents a gallon. When it comes down to it, making the smart purchase is wise, but time is money too.
Larger purchases, such as a vehicle, or a home, take a lot more time when considering what and when to buy. Timing is important because of interest rates, and of course income. My wife and I went through our first home buying experience in a flash. We were so excited to make that purchase that we really did not look at all the factors that needed to be considered. This ultimately cost us our first home. But it was a great experience and taught us valuable lessons when it came to the economy…...

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