Economics is everywhere we go and in everything we do. Scarcity, choice and opportunity cost, the guiding principle of economics, consciously or unconsciously, drive the decisions we make in everyday life. Understanding Economics helps us make optimal choices and lead lives of contentment. Individuals incur opportunity costs in every decision they make. Businesses rely on the interplay of the market forces to derive prices and wage rates. Governments exercise economic policies to aid a nation’s development.