The key to learning basic economics is first understanding what economics means and how it applies to everyday living. The textbook meaning for economics is “ the science, theory or practices that deals with the apportionment or distribution of services and goods and the consumption of said goods or services.”
In other words the buying, selling and production of merchandise or a service for the purpose of making a profit and circulating the money through out the community creating an economy.
Understanding economics doesn’t require an individual to be a statistical data analyst, economist or mathematician. There are many ways to learn about basic economics by reading books from the library, online, taking an economics class at the local community college or university and understanding economics is part of everyday living.
Professors, theorists, economists and even television commentators debate daily on the economy and introduces the public to such words as “inflation, S&P, daily index and a host of other words about economics and the economy.
The proliferation of the Internet and cable television has brought the complex world of business into viewers homes and now the public is demanding an understanding of how the business world affects them. Some of the most common used phrases pertaining to understanding basic economics are as follows.
- Supply and Demand: the process of meeting the needs or demands of the consumer, by providing a service or goods. A supply shortage of goods or services tends to drive the price hirer and too much inventory tends to drive the price down.
- Macroeconomics: the culmination of how the entire business community is affected by the economy. This affects industries, politics and even a country’s financial future.
- Microeconomics: how an economy affects an individual or community through a series of attributes such as entrepreneurship, employment, recession and economic recovery.
This is just a few of the business jargon that applies to the world of economics. For the individual who doesn’t have the business acumen yet still wants to acquire some basic knowledge about economics visiting a brokerage firm or local business and simply asking for some information about economics is one way to learn about economics.
Talking with an economics teacher or financial expert may be feasible, nothing replaces simple research from reading, online research or attending a business seminar. Understanding how money and credit affects the individual and community is key to learning basic economics.