basic economics by manish baranwal

basic economics by manish baranwal

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MANISH BARANWAL By Manish1ly Updated Sep 25, 2011


Basic Economics

A Citizen's guide to the Economy


Thomas Sowell

Author of the Vision of the Anointed


Economics is the study of the use of scarce resources, which have alternative uses.

When a military medical team arrives on a battlefield where soldiers have a variety of

wounds, they are confronted with the classic economic problem of allocating scarce

resources, which have alternative uses. Unless their time and medications are allocated

efficiently, some wounded will die needlessly.

The inherent reality is that there are not nearly enough beachfront homes to go around

and prices are just a way of conveying that underlying reality. When people bid for a

relatively few homes, these homes become very expensive because of supply and

demand. But it is NOT the prices that cause the scarcity. Even if Congress were to

declare that beachfront homes were a basic right of all Americans, it still would not

change the realities of the situation.

Prices act as a guide for c...

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