Tag: Nature of Economics

Economics Defined

Economics Defined Economics is the study of how individuals, businesses, governments and societies as a whole, employ resources to satisfy competing wants and needs, in light of scarcity. If ever you believed that the earth’s abundance of resources was limitless, please negate that thought. It is anything but. Yet, in spite of this shortage, it…...

An Economy

An Economy An Economy is the system in which available resources are distributed to meet society’s wants and needs. In deciding how to allocate these scarce resources, three questions must be answered: how will it utilize its resources efficiently? Which combination of goods and services should it produce? And, how much of the total goods…...

Scarcity and Choice

Scarcity and Choice The recurring theme that makes a problem an economic one is the problem of scarcity. All the factors of production, that is, land, labour and capital are all limited. It is this lack of what is available, relative to that wanted, that leads to the reality of us all making choices.  ...

Opportunity Cost and Monetary Cost

Opportunity Cost and Monetary Cost The opportunity cost of a decision is the value of the next best alternative this decision forces a person to do without, while the monetary cost is the market price of goods. Therefore, the opportunity cost of buying a blackberry is not its market price, but the value of the…...

Economics Defined

Economics, according to the Economist’s Dictionary of Economics is defined as the study of the production, distribution and consumption of wealth in human society. Economics is usually looked at through the eyes of scarcity and choice. It is often said that the central purpose of economic activity is the production of goods and services to…...