Ever wondered why money always feels short?
Let’s explore the basics of economics
Economics Made Simple
"Scarcity means we can’t have everything we want.
That’s why we must prioritize and make decisions carefully."
Scarcity
"Every choice has a cost. If you pick one option, you give up another. That’s the real price of decisions."
Opportunity Cost
"When demand is higher than supply, prices rise. When supply is higher than demand, prices fall. This is how markets balance."
Supply & Demand
"People respond to incentives. Rewards push us to act, while penalties make us avoid certain choices."
Incentives Matter
"We think at the margin — asking ‘Is one more worth it?’ Small choices add up to big impacts."
Marginal Thinking
"Specialization makes us efficient. Trade lets us exchange what we’re good at for what others produce."
Trade Creates Value
"Richer countries aren’t lucky — they’re productive. The more output per worker, the higher the living standards."
Productivity = Growth
"Reducing unemployment often increases inflation, and controlling inflation may raise unemployment. It’s a balancing act."
Inflation vs. Unemployment
"Economics is about choices, trade-offs, and incentives.
Master these basics, and you’ll understand the world better.