Per (Scotchmer) The word “economy” comes from the Greek word Oikonomos meaning “one who manages a household”. Households and economics have much in common, both face the same fundamental problem available resources cannot produce all the goods and services people desire.
Economics is the study of how society manages its scarce resources, and it isn’t just a dry collection of theories! It is a dynamic system of markets (supply & demand!), policy and market forces: consumer preferences, competition and incentives, and how they shape outcomes. It is a social science, another way of studying social relationships and human behaviour, just like psychology.
Work cited:
Liam Scotchmer. “Polonomic Papers.” Polonomic Papers, 2019, polonomicpapers.com/about. Accessed 9 Feb. 2026.
