Understanding Economic Problems of Today

Emmanuella Young

English 110

Essay 4

        How economics can be used to understand today’s problems

        According to the Oxford English dictionary, economics is the branch of knowledge concerned with the production, consumption, and transfer of wealth. Economics can also be described as the analysis of production, distribution, and consumption of goods and services. In other words economics support mostly everything humans do and also studying the way people and the markets interact. However, the economy exists to provide people or the society with products, goods and services they need to have to live. Hence, we face various problems today and economics can be  used to understand and answer most of the problems faced in the society. Understanding today’s problems will relate to application of some economics concepts and principles to answer questions on how best to utilize economics to understand today’s problems. Understanding today’s problems requires some knowledge of basic underlying economics concepts and principles, also understanding the concepts of macro and micro economics will give a more defined understanding of how today’s problems can be related to these economic concepts. Economic concepts or the knowledge of economics  can be used to understand some  problems of today  like what to production,  which is  linked to the forces of supply and demand, the above analysis do go further to influence the  prices of goods and services, healthcare cost, real-estate in the aspect of housing gentrification and why rent is high, class conflicts or social inequalities, unemployment which can lead to poverty, understanding opportunity cost, the problems associated with it and its relationship with the bourgeoisie and proletarians .  All the individual and societal problems can be linked to the bourgeoisies and proletarians of today, how we can understand today’s problems differentiating between the two different classes, how we can understand todays problems having the knowledge of economics associated with real-estate and also knowing who needs whom more amongst the bourgeoisie and proletarians using economic concept at the same time linking it to understanding of todays problems.

         In order to understand today’s problems, the  knowledge of micro and macro economics, decision making must be appreciated as it relates to current problems faced by society and individuals.  Micro economics is a study of economic behavior of individual, household and firms decision making process in relationship to the impact on overall economy, in other words, it studies small-scale economics or economic decisions, this is concerned with the factors that affect people’s economic choices and decisions,  how individuals respond to changes in price when faced with limited resources. This also explains why and how different goods dictate different values,  prices, how producers and consumers come together to exchange goods and services at a given price.  It also helps to understand the relationship between producers and consumers,  it deals with how much is produced, what to produce, and for whom to produce for at a price.