Running head: KEY ECONOMIC CONCEPTS
Key Economic Concepts
KEY ECONOMIC CONCEPTS
According to O'Connor, and Faille (2000), the economic situation of a country
determines the standards of living for the citizens of that country. It also affects the economic
conditions of other countries especially those nations which they trade with. This is evidenced by
a journal written by the American Economic Association in their website that analysis economics
and its related concepts (www.aeaweb.org). According to this journal, economics is explained as
the study of scarce resource which involves a thorough analysis of how people allocate their
resources as well as how they make important decisions in allocating the resources. Economics
revolves such topics as finance, securities as well as money and banking. This may be
misconceived to mean that economics involves around money yet economics goes beyond this to
explain trends in business activities and process of decision making in resource allocation.
Important Points Highlighted in the Journal
The journal discusses four important points that involves economics. First, it explains that
people’s behaviors are defined by the thing they aspire to achieve, that is the...