Capricorn – Physical – Heart: ECONOMICS

Every individual carries out a series of activities throughout his life, such as feeding, clothing, education, entertainment, etc., for which he has limited resources, so his concern will be to find the best way to use these scarce resources in order to satisfy his needs. Economics is the science that deals with the systematic study of human attitudes aimed at managing resources, which are scarce, with the objective of producing goods and services and distributing them in such a way as to satisfy the needs of individuals, which are unlimited. From the point of view of the individual, economics concentrates on the study of the allocation of scarce resources in order to obtain the maximum satisfaction of his preferences. Likewise, from the point of view of society, the interest is focused on how to obtain the maximum level of welfare given the available resources. Therefore, the object of economics is the study of the behavior of individuals and the organizations they make up, such as companies, families, the State, etc.

As in the case of individuals, the fundamental decision facing these organizations is also between the almost unlimited desires of their members for goods and services and the limited resources available to satisfy them. Thus, economics could also be defined as the study of society’s decision about what to produce, how to produce and for whom to produce. The obvious consequence of scarcity is the need for choice.

It is therefore the aim of economics, to study how consumers, producers and governments make decisions, and how these decisions determine the allocation of scarce resources in a society. While human behavior is the subject of analysis of other social sciences, such as sociology, political science, history and demography with different approaches and methodologies, they are complementary.

Two fundamental concepts emerge from the definition of economics: the scarcity of resources and the unlimited needs of individuals. Resource scarcity is defined in relation to needs that are unlimited and tend to expand with human development. In this case, we are not referring to a technological problem, but rather to divergences between human desires and available means. It is therefore a question of relative scarcity, which is why scarcity is not necessarily associated with poverty in economics. Countries with abundant resources can reduce scarcity, but they cannot eliminate it.

I invite you to read Matias’ post on the topic of the day.

Finally, I encourage everyone to reflect on the concept of the day. No one else but us can re-signify our own being

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