Economics is mainly concerned with the use of limited resources to satisfy unlimited human wants.It studies how the man manages his limited productive resources to produce goods and services to satisfy his unlimited wants like food, shelter and clothes and many other things.He want all these things for his welfare, his progress and even his very existence. His wants are unlimited but his resources to satisfy them are limited. Thus, the abundance of wants but scarcity of means to fulfill them drive the man to engage in economics activities; the activities which help him to earn his living. That is why, everywhere, we see people engaged in a number of occupations. They all work because they have to earn their living. Thus the Economics is the science of economics activities it studies how the man manages to satisfy his unlimited economics wants with the help of available limited resources.
The word Economics is derived from Greek Word Oikos ( a house) and Nemein (to manage) which in effect means, managing a household using the limited available funds in the most economical manner possible.In the beginning the term Economics was used to a frugal use of one's limited resources for the maximum production of desired goods and services.
Study of Economics tells us that why food costs rise when gas prices spike? why U.S. politicians worry when other countries talk of going bankrupt? why you can’t get a good interest rate on your savings account? All of these phenomena can be explained through economics.
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