what are examples of the economic way of thinkingSolutionWha

what are examples of the economic way of thinking?

Solution

What are the examples of economic way of thinking?

Answer

We can take the concept of economics defined by Robbins, “Economics is the science which studies human behaviour as a relationship between unlimited ends and scarce means which have alternative uses”

Here

Hence

In nutshell, Economics studies human behaviour between unlimited wants and scarce resources which have alternative uses. It studies how he makes choices between alternative uses to fulfill his needs. Man makes choice comparing cost and benefits of a particular option.

If we think in economic way

If you want to purchase a home for your residing by using the money $10,00,000 in your hand, money has alternative uses:

Example 1

Man makes always choices based on cost and benefits of a particular option.

Example 2

A poor employee’s shoe is damaged as it is being used for long time. According to his income level, he has two options.

Conclusion

Every were we compare costs and benefits of what we are going to do. Hence we think economically. Because to satisfy our needs, the resources available(money or any other resources) are not plenty. Scarcity makes us to make choices.