Economics is a social science that studies economic activities such as earning and spending money. It deals with how individuals and society use limited resources to satisfy unlimited wants.
The central problem of economics arises due to scarcity of resources in relation to unlimited human wants. Therefore, economics focuses on making choices regarding:
- What to produce
- How to produce
- For whom to produce
This lesson introduces the basic concepts of economics, including the role of firms and households, and the fundamental economic activities of consumption, production, exchange, and distribution.
Continue Reading… about CMA Foundation – The Fundamentals of Economics Lesson 1.1
