Question

Give an explanation:

Economy begins at home.

Answer 1

• To establish coordination between income and expenditure, the head of the family has to prioritize the needs because the needs of the family are unlimited and the means to fulfill them are limited.
• Household finance is related to income and expenditure.
• Every household has unlimited expenditure and the income earned is limited.
• The household has to make a choice regarding how it has to spend its limited resources.
• Management of this limited income to meet the unlimited expenses is Economics.
• As we manage the finance of our family, similarly the villages/cities, states, countries and the whole world needs to have economic management. So we say Economy begins at home.