Introduction to Economics

 Economics: It is that branch of knowledge in which those activities of human beings are studied which they undertake to acquire scarce means to satisfy their unlimited wants. It is the rational management of scarce resources at optimum level.


Resource is anything which is useful to satisfy the human wants,but it is technologically accessible,economically feasible and culturally acceptable. In Economics resources are means to production(Land,Labour , Capital, Entrepreneur).

Characteristics of resources in Economics:

1- It is scarce in nature. Like land etc

2- It has alternative uses. Like we can use land for farming or living.

3-Human wants are unlimited for resources. Like we want enough land on which we can produce everything as well as we live comfortably.

The above three factors leads to choice,thus scarcity and choice is the essence of Economics.

Branches of Economics

1-Micro Economics

2-Macro Economics

1-Micro Economics: It is that branch of economics which deals with economic problem and their solution at the micro level, micro level means an individual consumer, an individual producer and an individual market etc. Thus problem of consumer and producer are discussed here.

2-Macro Economics: It is that branch of economics which deals with economic problem and their solution at the macro level, macro means economy as a whole. Thus problem of a nation like unemployment, calculation of GDP are discussed here.

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