What is an Economy? Means to work . Earn a living
3 Main Economic Activities . Production Consumption Investment/Capital Formation
What is Economics? Social science which studies the way a society chooses to use its limited resources ,which have alternate uses,to produce goods and services and to distribute them among different group of people OR Economics is a social science which studies the human behaviour
Understanding Scarcity Limited Supply in relation to demand for a commodity Scarcity of resources Economizing of resource .-
ECONOMIC PROBLEM Economic problem is a problem of choice involving satisfaction of unlimited human wants having alternate uses.
REASONS FOR ECONOMIC PROBLE 1.SCARCITY OF RESOURCES 2. UNLIMITED HUMAN WANTS 3. ALTERNATE USES