What Is Economics?
- Economics is a social science in which we study the consumption, production and allocation of resources
- The goods and services produced by producers in the market are divided into two categories; needs and wants
- Needs consist of goods and services which are essential for the survival of humans, for example food clothing and shelter
- Wants consist of goods and services that are not essential for survival but people would like to have it, for example expensive phones and watches
- However there is a problem here. People’s wants are unlimited whereas the resources available to satisfy these wants is limited. This causes scarcity and leads to the economic problem.
- The economic problem states that the wants of people are unlimited whereas the resources available to satisfy these wants is limited, leading to scarcity
- Majority of the goods and services available to people can be categorized either as economic goods or free goods
- An economic good is any good/service/product which requires other resources to produce it. For example cars and mobile phones
- A free good is any product which does not require resources to produce it
- Economics is a social science in which we study the consumption, production and allocation of resources
- The goods and services produced by producers in the market are divided into two categories; needs and wants
- Needs consist of goods and services which are essential for the survival of humans, for example food clothing and shelter
- Wants consist of goods and services that are not essential for survival but people would like to have it, for example expensive phones and watches
- However there is a problem here. People’s wants are unlimited whereas the resources available to satisfy these wants is limited. This causes scarcity and leads to the economic problem.
- The economic problem states that the wants of people are unlimited whereas the resources available to satisfy these wants is limited, leading to scarcity
- Majority of the goods and services available to people can be categorized either as economic goods or free goods
- An economic good is any good/service/product which requires other resources to produce it. For example cars and mobile phones
- A free good is any product which does not require resources to produce it