Economics is the science that deals with the production, allocation, and use of goods and services, it is important
to study how resources can best be distributed to meet the needs of the greatest number of people. As we are more connected globally to one another, the study of economics becomes an extremely important one. Needs would be defined as goods or services that are required. This would include the needs for food, clothing, shelter, health care. Wants are goods or services that are not necessary but that we desire or wish for. For example, one needs clothes, but one may not needs designer clothes. One does not need toys, entertainment, gems, etc..One needs food, but does not have to have steak or dessert. One does not need glamorous trips, mall shopping, etc..
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An important part of the economics is the distribution of resources or goods so that people's needs are met. This is especially true in times of scarcity when there are not enough resources, goods or services.
The factors of production determine the maximum amounts of the various goods and services that can be produced at the present time. But people's desires for these goods and services are insatiable. As a result, the desires always exceed the ability to meet them, a phenomenon known as scarcity
3.Division of Economics
Ads by Google Psychology PhD WaldenUniversity.com Study For Your PhD Online! Psychology at Walden. Division of Economics 1. Microeconomics deals with the economic behavior of individual units such as the consumers, firms and the owners of the factors of production. Such specific economic units constitute a very small segment of the whole economy. Their activities are presented and discussed in details. 2. Macroeconomics deals with the economic behavior of the whole economy or its aggregates such as government, business and household. An aggregate is composed of individual units. The operations of the various aggregates and their interrelationships are analyzed to provide a profile of the economy as a whole. Macroeconomics is concerned with the discussion of topics like gross national product, level of employment, national income, general level of prices, total expenditures, etc.
economic goods
A consumable item that is useful to people but scarce in relation to its demand, so that human effort is required to obtain it. In contrast, free goods (such as air) are naturally in abundant supply and need no conscious effort to obtain them. See also good.
In economics, a service is an intangible commodity. More specifically, services are an intangible equivalent of economic goods
economic utility
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Ability of a good or service to satisfy one or more needs or wants of a consumer.
wealth in economics
In economics, wealth is the net worth of a person, household, or nation, that is, the value of all assets owned net of all liabilities owed at a point in time. For national wealth as measured in the national accounts, the net liabilities are those owed to the rest of the world. The term may also be used more broadly as referring to the productive capacity of a society or as a contrast to poverty. Analytical emphasis may be on its determinants or distribution.
Capital (economics)
Capital refers to sums of money or assets put to productive use. Capital, in the form of money seeking to expand itself through investment, forms the basis of capitalism.[1]
In economics, capital goods, or real capital are those already-produced durable goods that are used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process. Capital is distinct from land in that capital must itself be produced by human labor before it can be a factor of production. At any moment in time, total physical capital may be referred to as the capital stock (which is not to be confused with the capital stock of a business entity.) In a fundamental sense, capital consists of any produced thing that can enhance a person's power to perform economically useful worka stone or an arrow is capital for a caveman who can use it as a hunting instrument, and roads are capital for inhabitants of a city. Capital is an input in the production function. Homes and personal autos are not capital but are instead durable goods because they are not used in a production effort.
economic income
Amount a person or firm can afford to spend during a given period, and be as well-off at the end of it as at its beginning.
