Economics.pdf

Economics - A study of the problem of using available factors of production as efficiently as possible, to attain the maximum fulfillment of society’s demands for goods and services. - A study of production, distribution, and consumption of goods and services. - The ultimate...

Economics - A study of the problem of using available factors of production as efficiently as possible, to attain the maximum fulfillment of society’s demands for goods and services. - A study of production, distribution, and consumption of goods and services. - The ultimate purpose of economic endeavor is to satisfy human wants for goods and services. Economics as a Social Science - It uses scientific methods of inquiry in the study of society and its components. - It deals with the study of various modes and aspects of human interactions in a group as these people aspire to preserve their group as a social unit, to make it stable, to promote its growth, expansion and development. - It deals with the behavior of people as they deal with the issue of scarcity. Economics as an Applied Science - It is the study of observing how theories work in practice as it is a powerful tool to reveal true and complete situation in order to come up with the things to do. - It brings together economic theory, measurement and methods of statistical and econometric analysis, and interpretation of such analytical work to elucidate economic phenomenon and to inform economic policy. Economic Theory TRADE OFF an exchange in which a person gives up one or more things for a specific product, service, or experience. It refers to all possible actions other than the one currently being pursued. It is a deal that results from a compromise in which we must give up one aspect to obtain another. Macroeconomics