What is Economics?

  • Published on Jul 14, 2012
  • economicsdetective.com/
    The typical first-year student walks into his first economics class with very little idea of what economics is. He might have heard something like, "economics is the study of money", or "economics is another word for accounting", or "economics is hard, don't take that class", but none of those are true.
    "Economics is the study of the use of scarce resources that have alternative uses." That's the classic definition of economics. Basically, there are people, and people need resources to fulfil their desires. These resources cannot be infinite, but the desires can be, so people need to make choices about how to use their scarce resources. Economists study these choices.
    All economic questions fall into one of two categories: positive and normative. Positive economics describes "what is" and normative economics argues for what ought to be, so a question like, "why do people use money?" is a positive question and "should people use money?" is a normative question.
    A general rule of thumb is that if your economic model has no value judgements, it's positive economics, and if it does have value judgements it's normative economics, since to tell someone what he ought to do, you first have to judge what is best for him.
    Economics is also divided into microeconomics and macroeconomics. Microeconomics studies the behaviour of individual agents and markets, while macroeconomics studies the behaviour of the entire economy.
    Economists also have their own branch of statistics called "econometrics" that's specialized to analyzing economic data. Since economic data usually comes from the real world, and not from controlled experiments, econometrics faces mathematical challenges that other fields might not.
    The tools economists have developed to study human behaviour have broad uses outside of what we would traditionally consider economics. Economists study not only markets, but things like crime, war, the family, religion, culture, politics, law, and even genetics. That's why it's not unusual to see papers by psychologists, sociologists, criminologists, political scientists, anthropologists, biologists, neuroscientists, or legal scholars being co-authored by economists.

Comments • 197

  • Ceynte Show
    Ceynte Show 5 days ago +2

    I just got my Economics degree, why I'm watching this!!!!

  • john ragle
    john ragle 12 days ago +1


    FISSEHA KEBEDE 2 months ago +1

    The world economy is based on greed, speculation, manipulation and theft.

  • Steven S. Sadleir, Sai
    Steven S. Sadleir, Sai 2 months ago

    Good, but here is what they don't teach you rense.com/general96/Money&Power.pdf

  • Fun with Enjoy
    Fun with Enjoy 2 months ago

    I' like it subject

  • Melisa
    Melisa 3 months ago

    Thanks cuz I just picked it for my gcses and I barely know what it is😂😂I knew it was study of resources being used and stuff and was maths and geography related so I picked it

  • Commerce With Tayyab Mustafa


  • Jessica
    Jessica 3 months ago +1

    I literally just changed my whole alevel course/ subjects from engineering based to economics based now I dunno if I’m gonna regret it

  • Jan Norris
    Jan Norris 3 months ago

    interesting how all the professions (psychologists, anthropologists etc. in the chairs) were represented by men - really no one thought of including a graphic of a woman or two?? somehow not surprising - the whole field seems out of date, especially in not taking ecological limits seriously

    • The Economics Detective
      The Economics Detective  3 months ago

      They're just vaguely person-shaped blobs. And economics has been dealing with ecological limits (i.e. exhaustible resources) since at least 1931: www.jstor.org/stable/1822328

  • Mantri Sahab
    Mantri Sahab 4 months ago

    tvclip.biz/video/8SQjdtSP8hA/video.html. Best economics videos

  • Satisfier Trends
    Satisfier Trends 5 months ago

    It was scarcity definition ....

  • Sofia Hinch
    Sofia Hinch 5 months ago


  • Ngwa Chrislinnette
    Ngwa Chrislinnette 5 months ago

    I just had an A

    ARVY REPULLE 5 months ago


  • Digitech Sky
    Digitech Sky 5 months ago

    What is Economics?

  • Phebe Bofay
    Phebe Bofay 5 months ago


  • Shannon Provost
    Shannon Provost 6 months ago

    ek not eeek. I stopped watching :/

  • مصعب صلاح
    مصعب صلاح 7 months ago +1

    Hello mister I wish you speak slowly because I want to write video

  • Rahul Disari
    Rahul Disari 8 months ago

    the tabla music in background is making it a 100 thousand times interesting

  • Livana 14
    Livana 14 8 months ago +1

    I am not an economics major but this video was in my recommendations so i clicked it and it seemes interesting.

  • Shahadat Economics School


  • Alee Malla
    Alee Malla 8 months ago +1

    You are really a stumblin-block for other youtubers....This video is par excellence and exactly what I was looking for!

  • Idaly Aleman
    Idaly Aleman 9 months ago

    Im very interested in economics however I’m not so great in math. Do i have to be super great in math to study this?

    • Reza Eb
      Reza Eb 2 months ago

      Its very simple math

  • nathan rowsell
    nathan rowsell 10 months ago

    He said economics wrong

  • Malika
    Malika 11 months ago

    I didn't understand a single word

  • Hadi Saif
    Hadi Saif 11 months ago +92

    I literally just got my Economics degree, idk why I'm watching this lol

    • Gemima
      Gemima 4 months ago

      Hi! Just wanted to ask how much economics you had done before going to uni. I’m thinking about doing a joining degree so just want to know how much I should know

    • Tyrell Robinson
      Tyrell Robinson 5 months ago +1

      Congratulations. Good stuff bro. What would you say was the best topic of Economics.

    • Steel Fox
      Steel Fox 10 months ago +1

      @Hadi Saif I'll keep that in mind. Good luck

    • Hadi Saif
      Hadi Saif 10 months ago +16

      @Steel Fox Thanks! Overall, it was not a difficult major. The only course that I struggled in was Econometrics. From my experience, any degree could be fairly easy if you make the right connections and put some effort into it.

    • Steel Fox
      Steel Fox 10 months ago +3

      Congratulations! And btw was it hard?

  • abdilahi wll manan y horgale laga dhigeen Abdiasis

    faking Christan book

  • Mohammed Hashim
    Mohammed Hashim Year ago

    I really like economics

  • ODGaiming247
    ODGaiming247 Year ago

    im in class

  • Tuba Fatima
    Tuba Fatima Year ago

    economics nice subject

  • Deepak deepu
    Deepak deepu Year ago

    Bro make you are voice slow

  • Hazard
    Hazard Year ago

    Uhhhhh ok..........I did not get it

  • Lashen Resh
    Lashen Resh Year ago

    Wow this is very usful

  • Princess Zhavia
    Princess Zhavia Year ago

    I dont know what to choose Marketing management or economics 😑

    • Irine Gujabidze
      Irine Gujabidze 10 months ago

      li wrote a long answer, but then i realised i will just confuse you more. my advise, if you are into numbers, go for economics, even better, mathematical economics. marketing is more for creative type of people, and on top will give you a better general knowledge of business operations. so, the choice is easy, if numbers- economics, if words - marketing

  • Noha Evita
    Noha Evita Year ago


  • Bella Philipp
    Bella Philipp Year ago

    i dont know anything from this and im in fourth grade

  • Manda Music
    Manda Music Year ago

    A deal B
    B deal C
    C deal A
    NatureExistence Theory

  • Jyotshna Chowdhury

    It is good

  • Millie Harrison
    Millie Harrison Year ago +1

    or her..

    • HDL Lectures
      HDL Lectures Year ago

      Hai, please this video on economics:

  • Goodbye MyLove
    Goodbye MyLove Year ago

    Well um.

  • Camille Binford
    Camille Binford Year ago

    I saw this shit on my schedule and I was like exscuse me

  • #प्रकट Puff#

    Don't bother me it's a consumption and utility and think of production and satisfaction to all with scarce knowledge.

  • Niklas Pfaff
    Niklas Pfaff Year ago

    Super compact.

  • sertyyal
    sertyyal Year ago

    my mum forced me to pick this shit class. fuck me

  • ItsRavvvy
    ItsRavvvy Year ago +3

    I'm studying for this school year before school starts agian :D

  • Talitha Raitekiteki


  • ThingsWithUnicorn

    Thx I have a test on Tuesday and I need to learn.

  • Kadence Wenker
    Kadence Wenker Year ago

    its economics not ecomics!

  • Shubham Bajpai
    Shubham Bajpai Year ago +1

    Can this be considered a valid definition of economics?
    "People fulfil their wants by the use of scarce resources and for this purpose they have systems in place. Economics is the study of how people make choices to achieve this goal and how these systems work. It also focuses on how these systems can work or how people can make choices to achieve this goal."

  • Fly with Seraph wings

    Superb. Thank you, you saved my day.

  • Pranav Kumar
    Pranav Kumar Year ago

    Wow showing Maggi

  • aparna ashok
    aparna ashok Year ago


  • dr Albert sze wei Tan

    Worked for university for many years, economics is too complicated because human behaviour is emotional and irrational sometimes, www.topcause.yolasite.com

  • Suzanne Moha
    Suzanne Moha Year ago

    Well done

  • Kaylee Wilson
    Kaylee Wilson Year ago


  • Raman ##
    Raman ## Year ago

    Accurate definition! Plz... Upload more vedios about economics.

  • Jan Prikryl
    Jan Prikryl 2 years ago


  • singani anji
    singani anji 2 years ago

    Video background is very bad and voice is good

  • Bat Dude
    Bat Dude 2 years ago

    So it's a dismal science!

  • KP Updates
    KP Updates 2 years ago

    fuk it...you almost killed me with first word of the video"Whattt"