What is economics?
Economics is
the study of how individuals, governments, businesses and nations make choices
on allocating scarce resources to satisfy their unlimited wants. Economics also studies the production, consumption and distribution of goods and services.
The Economic problem
There is an economic problem that all countries face, it is that there are unlimited want and limited resources to produce more goods.
What are economic resources?
economic resources are also known as the factors of production. These include: Land, Labour, Capital and enterprise.
Land - the premises or site that the labourers work in.
Labour- the people who work at the site. (e.g. Teachers, Janitors, zookeepers, etc.)
Capital - the equipment used. (e.g. Trucks, Desks, laptops, etc.)
Enterprise/ Entrepreneurship - the person in charge or the person with the ability to organise or combine the factors of production. (e.g. Managers, Directors, CEOs, etc.)
Land - the premises or site that the labourers work in.
Labour- the people who work at the site. (e.g. Teachers, Janitors, zookeepers, etc.)
Capital - the equipment used. (e.g. Trucks, Desks, laptops, etc.)
Enterprise/ Entrepreneurship - the person in charge or the person with the ability to organise or combine the factors of production. (e.g. Managers, Directors, CEOs, etc.)
What is an economic system?
An economic system
is a system of production and exchange of goods and services as well as
allocation of resources in a society. It includes the combination of the
various institutions, agencies, entities and consumers that comprise the
economic structure of a given community.
These include:
These include: