Economics is the study of how wealth is created, distributed
and consumed. It concerns the ways in which a country produces,
distributes and consumes the tangible, material commodities of life. It
is also about how the proceeds or income from these activities are
distributed between those that contribute toward them: capitalist
businesses, workers, the state and the whole of society. Every person
affects the economy in some way and we are all affected by it.
Economics attempts to answer questions such as:
Economics attempts to answer questions such as:
- What is produced and how?
- Why does a particular country produce particular goods and services?
- How are the natural resources used?
- How does a country earn and spend its money?
- How are its people employed, and what technology do they use in their work?
- What is the relationship between these things and the wealth and poverty of different communities?
The basic assumption of Economics is that people have unlimited needs and there are only limited resources.
Economics explains how people choose to use the limited resources to satisfy their never ending needs.
Resources include the time and talent of people,
the land, buildings, equipment, and other tools on hand, and the knowledge of
how to combine them to create useful products and services.
Important choices involve how much time to devote to work, to school,
to leisure, how many dollars to spend and how many to save, how to
combine resources to produce goods and services, and how to vote and
shape the level of taxes and the role of government.
