Importance of studying economics

Our knowledge about economics is vital for many areas of society, especially when we are faced with a situation where we lack resources and we need to make choices. Our society has limited resources and cannot give and produce unlimited goods and services that people wish to have. That is why we need to make decisions that are cost efficient and can be beneficial. Therefore, by studying economics, we can understand how to properly and efficiently allocate scarce resources to satisfy our unlimited needs and wants. Also, by better understanding, the society can properly utilize and analyze the production, consumption and distribution of resources depending on the needs and wants of the people which can also help in making better choices to optimize the outcome.