Introduction to Economics

Economics

• Economics is the study of how people manage scarce resources to meet their needs.
• A need is the feeling of lacking something, alongside a desire to fulfill it.
• There are two types of needs:
  • Primary needs: directly linked to survival or personal development (e.g., food, clothing, education).
  • Secondary needs: increase well-being and vary based on time and culture (e.g., a mobile phone, internet access).
• Goods and services are what people use to fulfill their needs.
• Goods and services fulfill primary and secondary needs.