What is Economics?

1
What is Economics?

• Economics can be defined as the Social Science
  concerned with the Problem of administering or
  using Scarce Resources so as to attain the
  greatest or maximum fulfillment of societys
  Unlimited Wants.

2
Factors of Production

• Natural Resources land, minerals, water,
  forests, etc.
• Labor both physical and mental
• Physical Capital machines, tools, buildings,
  trucks, etc.
• Human Capital knowledge, education know how
  and
• Entrepreneurship the ability to organize a
  production process and take risks.

3
What is Microeconomics?

• Branch of economics that deals with the behavior
  of individual economic units-consumers, business
  firms, workers, and investors-as well as the
  markets that these units comprise.
• Microeconomics is about the allocation of scarce
  resources.

4
Decision Makers

• Households the principal owners of factors of
  production
• Business Firms the principal users of factors of
  production and
• Central Authorities the federal, state, and
  local governments and their agencies.