Think about the hundreds of decisions that you make in a day. Ever wonder how many of those decisions have an economic impact on your life? While it is unlikely that you have taken the time to analyze them, I would imagine that many of those decisions do have an economic impact. From the clothes you buy, to the car you drive, to the fact that you are taking this course; all of these have economic repercussions. You already are an economic "player". Helping you become an informed "player" is one of the goals of this course.

To be honest, there seem to be a variety of ways in which we can define the term "economics." All of the definitions that I have found, while having their own uniqueness, basically refer to the same concept. Let's look at two basic definitions of economics and learn a little about what economics is all about. ECONOMICS is the study of how individuals and governments allocate scarce resources in an attempt to satisfy unlimited wants. AND ECONOMICS is the study of people producing and exchanging to get the goods and services they want. By looking at these two definitions of what economics is, we can see that there are some assumptions in the study of economics. 1. People's wants are unlimited. 2. The resources to satisfy these wants are limited (or scarce). 3. People (and governments) are willing to exchange (trade) in an effort to satisfy their wants.

Before we move on to the first activity in Module 2 (The Chamber of Commerce), it is important that we understand the difference between a "good" and a "service". Let's also identify what we mean by the term "resources." Click here to learn more about these terms.