Economics: is the social science that analyzes the production, distribution,

and consumption of goods and services.

Microeconomics examines the behavior of basic elements in the

economy, including individual agents (such as households and firms or as buyers and sellers) and markets, and their interactions.

Macroeconomics analyzes the entire economy and issues affecting it,

including unemployment, inflation, economic growth, and monetary and fiscal policy.

Economy:

An entire network of producers, distributors, and consumers of goods and services in a local, regional, or national community.

Why do we study economics?

We need economics because we as individuals and as a society experience scarcity (of raw materials, of goods and services, of time, and so on) in relationship to our ever-growing needs and wants. It gives us a way of understanding how to make best use of natural resources, machinery, and people's work efforts. Economics is about how, as individuals and groups, we get the things we want to buy and the services we need and want.

Economic resources: are

those scarce resources which help in the production of goods and services".

The economic resources are classified under two main heads:

(1) Property Resources and (2) Human Resources.

(1) Property Resources: In property resources, we include land and capital. The
term land is used to describe all natural resources which are used in the process of production and yield income. These resources which are free gifts of nature include agricultural land, forests, mineral deposits, fisheries, rivers, lakes, oil deposits, etc. The term capital refers to all man made resources which aid to production. Thus machinery, equipment, tools, factories, storage, transportation, etc., which are used in the production of new goods and supplying them to the ultimate consumers are capital resources.

(2) Human Resources: Human resources include labor and entrepreneurial

ability. Labor in economics refer to human effort, physical and mental which is directed to the production of goods and services. Thus factory worker, clerk, typist, teacher, doctor. Judge, physicist, etc., fall under the category of labor.

Economizing problems:
The fundamental issue that arises for a society out of the relative scarcity of goods and services compared to the demand for them by consumers. Solving the economizing problem for a business involves making decisions about how best to allocate resources to those demanding them given the company's objectives