Lakhasly

Economics is the study of how individuals, businesses, and governments allocate scarce resources. Scarcity means that goods and services are limited, forcing us to make decisions about their use. Economics analyzes the production, distribution, and consumption of these goods and services. To study economics, we must address three fundamental questions: what goods and services should be produced, how should they be produced, and who should receive them. The answers to these questions determine a society's economic system.

Economics is a socul sciente that focuses on the production distribution ind consumption of goods and services and analyzes the thoites that individuals ousituses governments and nations make to allocate resources Economics is the study of bole people pilocate scarce resources for production distribution and consumption both midividually and collectively

Scarcity means that tietoa hotte Amount of a good or service (Basically they are limited). Because something is limited, we need to make decisions regarding how we use and allocate our resources. So studving economics helps use to better make decisions repavilling how to deal with the condition of scarcity

Before we begin, there are few more definitions we should learn. In addition to scarcity you should know that:

Goods: are tangible items, or products, such as Pop Tarts, automobiles and I Phones. Services: are intangible items such as a haircut, mowing a lawn, and a dentist visit. Also, you should know the difference between scarcity and shortage. Shortage is a short term condition of a limited amount of a resource. For example, if there is a frost in Florida and the orange crop is destroyed, the supply of oranges will be limited, but only for that growing

season. In order to study economics, they need to address these Basic Economic questions:

What goods and services should be produced? What goods and service does the Society need? What goods and should the society produce? Should the society spellbein particular products and trade for others

How should goods and services be produced? How should the factors of production be combined What resources should be used? How should we utilize our labor and capital Who should receive the goods and services? How should goods and services be distributed Should everyone receive them? If not how does sguety decide who gets Particular goods and services and who might not