Today we live in a very competitive and crowded Earth which contains limited resources that need to be allocated and distributed properly among societies for maximum benefit, this is called Economics. Economics can also be defined as "the social science that analyzes the production, distribution and consumption of goods and services" (Unknown, 2007), these goods and services need resources in order to be completed or created and thus get the most out of them. 10 Economic principles have been created that are basic towards understanding the importance and function of this science in today's world and how it benefits each and every one of us in our daily lives.
A very important principle states that "The Cost of Something Is What You Give up To Get It", this principle basically says that the cost of an item or service is what you sacrificed (time, labor, money, etc.) in order to produce it or to accomplish it. This principle is used in everyday life, for example: purchasing a new laptop can be very expensive or very cheap, it all depends on the time it took to create it, the materials used in it and the performance that the laptop will give to the person who buys it. Another case might occur when a manager wants to hire an employee, he needs to analyze how much he is willing to pay that person to work for his company depending on the set of skills, knowledge and uniqueness of the work that he can carry out and ultimately how he will improve the company in the long run.
The second principle that I chose is "Trade Can Make Everyone Better Off", this is a very important and popular principle that is practiced every day from children trading toys to huge potencies exchanging resources that will benefit both of them. Since resources were not .
Economics Principles .