Term Definition Paper

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Date Submitted: 02/24/2009 03:44 PM

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Rakibur Joarder

University of Phoenix

Term Definition Paper

To understand microeconomics, it is very important to understand the essential terms that comprise it. It is very important to know these terms very well as they are the basic foundation blocks for economics. Knowing the terms helps in understanding the laws of supply and demand, theories of economics, microeconomics, and factors that lead to a change in supply and a change in demand. Additionally, it will help in understanding how economy affects a country and how knowing the terms can help in solving a country’s economic problems. This paper seeks to explain the terms economics, microeconomics, laws of supply, laws of demand and the factors that lead to a change in supply and a change in demand.

According to Colander (2008), “Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society.” In short economics is the study where we learn how to efficiently use the resources that we have. By resources we mean what people have, for example it can be some talent or skills some one might have, tools, land, education, equipment etc. So study of economics helps us to understand how to use what we have and combine them to create useful products and services and in return get what we need. Economics can help us make both hard and easy decisions more effectively. These decision can be some thing like how spent our money, how much time for work, how much time for school, how to spend our money in a more productive manner, how to save efficiently and many more. People use their resources to get what they need to improve their livelihood from which they gain satisfaction. Economics not just teaches how to use the resources but also it teaches how to get the most out of the resources available to...