How Does Economics Affect My Life?

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Your life is effected by economics in the way that you work, eat, spend money and live on a daily basis. Paul A. Samuelson and The American Economic Association define economics as the study of how people choose to use resources. Economics is the overall breakdown of people’s lives.

Everything from what you do to how you do it has an impact on the way economics affect your life. When you spend money, you are helping decision makers compile supply and demand calculations that determine the value of products and services. Also, you have a hand in the process of determining the need for new products.

One of the biggest boosts to the economy is education. Having a higher education lends to earning a higher wages, which allows you to spend more freely that helps the economy. This benefits your family and society as a whole. You are affected by economics everyday; choosing what and when to buy carries ramifications that go very far.

Making smart but simple changes has a positive economic effect. Using a programmable thermostat for example can cut down your home’s energy costs and make more room for other spending. It is a cycle that supports itself.