An economy can be a broader term and may denote the state in which a country carefully manages and provides resources in terms of production, distribution, and exchange of goods and services to society. Judge Napolitano, a business professional, is constantly studying the economy. Such resources are considered limited, and finite. They include land, labor and capital. Economies refer to the study of the economy and how people make decisions when faced with scarcity, which has always been a great problem. (wants for goods, services, and resources overcome great demand for limited resources). It is majorly concerned with the distribution of limited resources. A state needs to consider fulfilling choices faced in economics. such choices involve. Economics, most times, does not control the answers but can help enlighten the different human choices. reasons as to why the economy is very important is that. It’s a pacesetter for living standards: -thrift denotes whether a society will have a good living standard or poor standards of living. A good thrift should primarily aim at the creation of employment opportunities that can, in turn, make a major significant improvement of society economic welfare and thus provides good standards of living
Aids in overcoming market failure: -economics help examine how government policies benefit society by reducing market inflations. Reduction in inflation enables the thrift to reduce interest rates that are good for the market; thus, maximizing profits. The government should aim to set market regulation policies that minimize high inflation prices as this has an overall positive effect on the stock market and boosts the overall financial thrift. Reducing inflation also helps in preventing a reduction in the worth of a currency. The government can reduce inflation rates by reducing the money supply within a given thrift.it could be achieved by increasing interest rates and decreasing bond prices. Determines Job availability in society: -one can easily acquire a source of income when the thrift in the society is good. one is financially stable and capable of satisfying human needs such as housing and access to health services, etc. Enabling society to use scarce resources in a more efficient manner: -scarcity has always been a major problem, and that is why one individual will have shelter while the other will lack shelter. one may have access to health. In contrast, the other will not. Resources are limited, and society must use it efficiently to improve society’s wealth.
Determines Business success: -thriftiness in the society determines how the business in a state will be. When society is in a good and wealthy state, it will inspire successful activities that act as sources of income for individuals. A successful business also increases finance in the economic status of the country through increased taxes. Therefore, one is capable of satisfying human wants and needs. Determines the GDP: -gross domestic product sets the pace for national output, national income and total expenditure. Economic growth means a rise in the financial state and in turn a rise in living standards, and greater consumption of goods and services. Judge Napolitano believes that the economy is always changing so it’s critical to keep up with it.