Introduction to Economics — full notes
Economics · Microeconomics - Introduction to Economics
Introduction to Economics
1. Definition of economics
Economics is the study of how individuals, businesses, and societies allocate scarce resources to satisfy unlimited wants.
2. Basic economic concepts
| Concept | Meaning |
|---|---|
| Economic resources | Land, labour, capital, entrepreneurship |
| Human wants | Desires for goods and services, effectively unlimited |
| Scarcity | Resources are limited relative to wants |
| Choice | Using a resource for one purpose means not using it for another |
| Opportunity cost | The value of the next best alternative given up when a choice is made |