introduction to principles and practices of economics

Economics is the study of how individuals, business, government and societies make choices about how to allocate scarce resources to satisfy unlimited wants and needs.

  since resources like time, money, labor and raw materials are limited , economics helps us understand how people decide what to produce, how to produce it and for whom it is produce.

economics have 2 main branches;   

                a)microeconomics: focuses on individual and business decisions (e.g., pricing, supply, demand.)

                  b)macroeconomics : looks at the economy as a whole (e.g., inflation, unemployment, GDP)

         distinctions between needs and wants