Applying what you study to real life

An economist’s approach: Life

In life, as in markets, we face the economic problem; the problems posed by allocating scarce resources to infinite wants. For example, the desire for power and money.

You will find, if you have not already, that the resources of money and power are scarce and the want for them, prevalent amongst many, is infinite meaning that they forever cost those who seek them dearly. Seeking to fill the demand for power or money is impossible, those who seek them often want more and there is only a certain amount out there.

However, there exist goods that by consuming we do not diminish the supply of and cost us nothing to consume if we but desire them; public goods. Two good examples of this are love and happiness. Love -at least the kind to which I refer- cannot be charged for and in consuming love you do not exclude others from consuming it. Similar things can be said for being happy. In fact, in being happy you can make other people happy, which is what’s known as a ‘Multiplier effect’.

As an economist, the best advice I can offer in leading your life is to love and be happy.

Heeh, so cute :)