Economics is concerned with humanity’s well being or welfare. It encompasses the social organization and the relationship involved in using scarce resources and available technology to satisfy seemingly unlimited human wants and in allocating those resources among diverse alternative wants.
The key elements of economic activity are (1) human wants (2) resources, and (3) technology.
Price theory (microeconomic theory) and the theory of the economy as a whole (macroeconomic theory) constitute the basic analytical tool kit of the discipline of economics.
Microeconomics is concerned primarily with the market activities of individual economic units such as consumers, resource owners, and business firms. It is concerned with the flow of goods and services from business firms to consumers, the composition of flow, and the process for establishing the relative prices of the component part of the flow.
Macroeconomics treats the economic system as a whole rather than treating the individual economic units of which it is composed. The value of the overall flow of goods (net national product) and the value of overall flow of resources (national income) are the focus of attention.
Through this paper we will illustrate the importance of three concepts which are considered to be very important in determining and achieving economic prosperity. The three concepts are:
1- Government size.
2- National income accounting.
3- Market System Economy.
It is a fact that no society throughout history has ever obtained a high level of economic affluence without a government. Where government did not exist, anarchy reined and little wealth...