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INTRODUCTION| 2|
Basic concept of economics| 2-3|
economics problems| 3-4|
Mixed economics| 5|
Socialism| 6-8|
Capitalism| 8-12|

Introduction

Adam smith defined the subject matter of economics as the study of the causes of material welfare or as the science of wealth. Alfred Marshall in particular defined economics as the study of production, consumption, exchange and distribution of wealth by men engage in the ordinary business of life. Robinson however defined this subject matter as too restricted in scope to embrace all the facts. According to Robinson "Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses". A satisfactory definition must combine both these conception of economics. We may define economics as social science concerned with the proper use and allocation of scarce resources for the achievement and maintenance of growth and stability. Introduction

Adam smith defined the subject matter of economics as the study of the causes of material welfare or as the science of wealth. Alfred Marshall in particular defined economics as the study of production, consumption, exchange and distribution of wealth by men engage in the ordinary business of life. Robinson however defined this subject matter as too restricted in scope to embrace all the facts. According to Robinson "Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses". A satisfactory definition must combine both these conception of economics. We may define economics as social science concerned with the proper use and allocation of scarce resources for the achievement and maintenance of growth and stability.

Basic Concepts of Economics
Basically there are 6 basic concepts of economics. These are: 1)   Ends/wants: These are goods and services, which are desired for consumption. Goods include things like foods, houses, books, etc. while services hairdressing the service of an actor etc. 2)   Means/Resources. These refer to basic instruments with which human wants can be satisfied. Resources include the productive resources such as lands labour, capital and entrepreneur, which are used in production of goods and services, in short human ends/wants are many and the resources to satisfy them are limited/ scarce 3)   Scarcity. This is the fundamental or basic economic problem. Human wants/ends are unlimited as a result of scarcity of resources. In other word scarcity refers to the inability of human beings to provide themselves with all things. However, economic goods are scarce (Limited in supply) in relating alternatives. This scarcity is the root of economics. 4}   Choice this refers to distribution of our scarce resources among different economic ends. When we have chosen or selected one thing we have to sacrifice some other things because our resources may not be sufficient to satisfy both at the same time. Thus choice arises because of scarcity of resources. 5)   Scale of preference. In order to achieve maximum satisfaction with limited resources at disposal, individual, firm, and government arrange their unlimited wants in order of relative importance and this is called a scale of preference. Thus, different economic agents make efficient use of scarce resources to meet up their numerous wants or production needs as a result of arrangement of their wants in order of preference. Therefore, the agents choose those that give the highest utility. 6)   Opportunity cost. This is the forgone alternative. The concept of opportunity cost i.e. (real cost) which is the alternative forgone when resources are directed to the satisfaction of one wants rather than the next alternative uses.

Nature of Economic Problems
The main problem of an economy is that of economizing resources: in this sense economics is the study of the allocation of scarce resources and alternative ends....
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