Economics is an important part of the high school education system whereby students learn to make smart choices in the management of resources such as money and time through studying the working systems of the markets. This paper focuses on discussing economics topics significant to a high school student.
Demand is among the most important building blocks in the analysis of economics whereby economists refer to a demand curve rather than consider the demand of a single quantity, as it follows the quantity of a good or service demanded against different prices. This gives rise to the law of demand which states that the rise of the price of goods or services means the fall in demand and vice versa.
Supply goes hand in hand with demand and refers to the availability of goods and services in the market. Economists consider the supply curve where the quantity of products is considered against the prices successively.
Consumers refer to people who acquire goods or services for direct use or to own them rather than for use as raw materials in the manufacture or for resale. Consumers play a major role in the market economy as they influence the behavior of producers.
Lack of perfect product knowledge in terms of quality and safety drives the need for consumer protection because consumers are afraid of being “ ripped off”. To build consumer trust and enhance economic activity, producers thus need to offer assurance of quality and safety to the consumers.
Inflation is whereby the currency unit such as pounds or dollars loses its purchasing power and is usually expressed as an increase in the price level of goods and services. Inflation affects the economy of a nation as it increases the cost of living of the residents.
Every time people take resources such as raw materials and put them into different uses to produce more valuable products, there occurs economic growth. This process, however, has its side effects, for instance, increased levels of pollution from continued manufacturing processes.
Gross Domestic Product refers to the officially recognized measure of the sum output of goods and services in a country’s economy. It is used as the main measure of the sum total production of an economy as it measures all the labor and capital outputs.
All modern economies experience significant changes in their economic activities whereby industries experience booming during some years and there is increased employment while during some other years there is increased unemployment as many industries are operating below their capacity, referred to as depressions/recessions. These periods of booming and depression make up the business cycle.
Technology is another major aspect of economics as it influences the economic growth of a particular nation. In recent times, developments in technology have seen an increase in economic growth through major steps in developments such as telecommunications which ease communication and improve the efficiency of conducting business such as the use of video calls whereby the people conducting business are not forced to travel across the globe to communicate.
Scarcity refers to the situation whereby people imagine various ways to use a product on an increased level than the resources available for use. The more the imagined ways versus the quantity of the resource, then the higher the scarcity.
Competition in economics refers to a person’s endeavor to gain or achieve what another person or entity endeavors at the same time. Competition for products and resources that are scarce is a major core on which modern economics is built on.
Money refers to the medium of exchange used in transacting business. It may be in the form of coins or notes such as dollar bills or pounds which are held at commercial banks or in other depository units such as credit unions. The average prices of goods and services that are produced in a given economy are referred to as the price level.
Major economic topics on demand, supply, consumers, inflation, money, competition, economic growth, and scarcity are important for a student in high school as they enable them to learn how the market works and thus be able to make wise decisions on the management of their scarce resources.