2015-08-21
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1. The term “economics” comes from the Ancient Greek “oikonomia”, the word composed of “oikos” ("house") and “nomos” (“custom” or “law”), thus, “rules of the house(hold)”.
2. Wants and needs refer to people’s wants to consume certain goods and services.
3. In economic terms, a good is a physical object that can be bought.
4. Economics often uses such categories as factors of production, which are basic elements used to manufacture goods and services.
5. Scarcity exists because people’s wants and needs are greater than the resources available to meet them.
6. The main problem in economics is the question of allocating limited resources between competing uses.
7. That’s why very significant decisions must be made about three basic economic questions: What to produce? For whom to produce? and How to produce?
8. For the purpose of answering this question we need to determine the needs of individual consumers as well as the economy in general.
9. Goods are thus produced for those consumers who demand the goods, and have the ability to pay for the goods demanded.
10. No aspect of life is untouched by economics – despite the fact that it can be hard to convey its central importance in human lives.
