Economic problems are an ever present and inherent part of our lives. The existence of high levels of unemployment, global competition in the world markets, arguments on free trade agreements and inflation are fundamentally economic in nature. There are many other social, political and environmental problems that have important economic consequences. Economics is essential to understand the world in which we live and work. It also equips us to participate more successfully in the increasingly knowledge based and interdependent global economy of the 21st century. Economics is fundamentally about choice behaviour about how individuals, families, firms and government deploy their scarce resources so as to maximise the economic well being of the society. The study of economics also gives us better understanding of the objectives and methods of the government's economic policy.