Scale of preference is simply a concept that drives to satisfy the wants of an individual in the order of their priority and importance


(i) An Individual: To suppliers,the scale helps determine the goods with most demand for efficient production and supply. For consumers,the scale helps them make the right decisions within their at the time of fulfilling the wants.

(ii) A firm: If you own a business and there is a demand ― need and want ― for your goods, you can use a scale of preference to compare the scarcity of resources ― lack of resources ― against the demand for your goods.

(iii) A government: Scale of preference helps us to rank our needs in order of their relative importance.


(i) Virtually every major problem facing the world today, from global warming, to world poverty, to the conflicts in Syria, Afghanistan, and Somalia, has an economic dimension. If you are going to be part of solving those problems, you need to be able to understand them. Economics is crucial.

(ii) It is hard to overstate the importance of economics to good citizenship. You need to be able to vote intelligently on budgets, regulations, and laws in general.

(iii) A basic understanding of economics makes you a well-rounded thinker. When you read articles about economic issues, you will understand and be able to evaluate the writer’s argument. When you hear classmates, co-workers, or political candidates talking about economics, you will be able to distinguish between common sense and nonsense. You will find new ways of thinking about current events and about personal and business decisions, as well as current events and politics.


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