Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.
Economics may be defined as a science that deals with the activities of man in obtaining wealth for the satisfaction of his wants.
Economics is the art of making a living.
Economics is the proper allocation and efficient use of available resources for the maximum satisfaction of human wants.
Economics is the branch of social science that deals with the production and distribution and consumption of goods and services and their management.
Economics is the science that deals with the production, distribution, and consumption of wealth, and with the various related problems of labor, finance, taxation, etc. (Webster's New World)
Economics is the study of choice and decision-making in a world with limited resources. Right and prudent administration of assets, Public wealth, set of services and economic interests.
The study of the choices people make to cope with scarcity.
Economics is the study of how to use our limited resources to satisfy our unlimited wants as fully as possible.
DIVISION OF ECONOMICS
Microeconomics is that branch of economics that deals with the economic behavior of individual units such as consumers, firms and the owners of the factors of production, for example, the price of rice, the number of workers of PLDT, the income of Mr. Garcia, etc. Micro means small, thus microeconomics deals with the study of the small units of the economy.
Macroeconomics is that branch of economics that deals with the economic behavior of the whole economy such as government, business and household. Examples of macroeconomic studies are national income, employment and inflation.
Microeconomics and macroeconomics are closely related, for example, compared with the human body, the microeconomic units are the heart, kidney, lungs and other parts. The macroeconomic unit is the human body. A defect in part of the human body affects the whole body. The same is true in the operation of economics. HISTORY OF ECONOMICS
It has started to be known when Adam Smith’s book Wealth of Nations was published in 1776. The word “economics” was derived from the Greek word oikonomia. It means household management. The housekeeper has to see to it that there is enough food, clothing and shelter; that the house is kept in order; that the necessary duties and responsibilities are performed by the members of the household; and that their products are distributed according to necessity. To the ancient Greeks, the term oikonomos applied more on the proper management of the city-states. Economics emerged as a science only in 1776.
BASIC ECONOMIC PROBLEMS
1. What goods and services to produce and how much?
A society must determine how much of each of the many possible goods and services it will make, and when they will be produced. Will we produce frozen pizzas or shirts today? A few high-quality shirts or many cheap shirts? Will we use scarce resources to produce many consumption goods (like frozen pizzas)? Or will we produce fewer consumption goods and more investment goods (like pizza-making machines, which will boost production and consumption tomorrow.
2. How to produce the goods and services?
At this point we are talking about production and technology. As a general rule, goods and services must be produced in the most efficient manner. This means maximum output with minimum input without sacrificing quality. The application of modern technology has increased output and decreased cost of production. In the case of poor countries, they cannot afford to apply modern technology as its expensive and besides poor countries have an oversupply of idle labor force. The use of advanced technology will create more unemployment.
3. For whom are the goods and services?