July 22, 2007


Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses.
Things that increases utility are called goods/ services. And these goods can be either economic or non economic. Non economic goods are the abundant goods. Air for instance is essential for living but only because of its abundancy it has no price, therefore it is a free good. Diamonds on the other hand aren’t that necessary for living but they have a high price because of their scarcity, therefore diamonds are economic goods.
Applying the same analysis on human relations we find out that regardless the degree of utility we have from persons, the more abundant we find a certain person the less price (attention) we pay for him. the scarcer a person the higher the attention (price).

Moral of the story; Be scarce or if not try artificial scarcity.

P.S. I still hate economics that’s why I decided to have a master degree!

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