Economics

1. BASIC ECONOMICS

Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. (L.Robbins 1935)

Economics is the social science that examines how people choose to use limited or scarce resources in attempting to satisfy their unlimited wants.

Wants - This is simply the desire of the citizens of a country. Each individuals wants are different and varies time to time.

Needs - These are basic requirements human must have in according to survive.

A need is something that you have to have. Want is something you would like to have

Scarcity - Is the fundamental economic problem of having seemingly unlimited human needs and wants, in a world of limited resources.

Meaning that society has limited productive resources to fulfil unlimited human needs and wants.

Opportunity Cost - Is the cost we pay when we give up something to get something else.

There can be many alternatives that we give up to get something else, but the opportunity cost of a decision is the most desirable alternative we give up to get what we want.

Factors of Production

These are the resources employed to produce goods and services. They facilitate production but do not become part of the final product.

The efficiency of using factors of production determines the measure of success a nation has.

Land – Natural Resources

Capital– Man made physical goods used to produce other goods and services

Labour- Labour is the human input into the production.

Enterprise - The entrepreneurship provides the initial ideas, They risk their own resources in business ventures

← What to produce?

← How to produce?

← For whom to produce?

←

ECONOMIC INDICATORS

← Gross Domestic Production

← Average wage level

← Work Force

← Employment Rate

← Unemployment Rate

← Balance of Payments

← Inflation Rate

← Interest Rates

← Exchange Rates

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