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1. Basic Concepts of Economics

Economics studies the allocation of limited resources to satisfy unlimited wants, focusing on the production, distribution, and consumption of goods and services. Key economic terms include wants, needs, scarcity, choice, and resources, while the main economic problems involve what to produce, how to produce, and for whom to produce. Furthermore, different types of resources and basic economic activities such as production, consumption, and exchange are outlined. The concept of opportunity cost is introduced as the value of the next best alternative forgone in decision-making.

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Sections

  • 1

    Basic Concepts Of Economics

    This section introduces the basics of economics, focusing on the allocation of limited resources to satisfy unlimited wants.

    Learning Practice

  • 1.1

    Introduction

    This section introduces the field of economics, highlighting its focus on resource allocation to meet human wants.

    Learning Practice

  • 1.2

    Meaning Of Economics

    Economics explores how limited resources are allocated to meet unlimited human wants, deriving its meaning from household management.

    Learning Practice

  • 1.3

    Basic Economic Terms

    This section introduces key economic terms that are fundamental to understanding economic principles.

    Learning Practice

  • 1.4

    Types Of Resources

    This section outlines the three main types of resources used in economic production: natural resources, human resources, and man-made resources.

    Learning Practice

  • 1.5

    Central Problems Of An Economy

    This section outlines the three fundamental economic problems that arise from the scarcity of resources: what to produce, how to produce, and for whom to produce.

    Learning Practice

  • 1.6

    Basic Economic Activities

    This section introduces the fundamental economic activities that form the basis of economic interactions, namely production, consumption, distribution, and exchange.

    Learning Practice

  • 1.7

    Wants: Characteristics And Classification

    This section discusses the characteristics of human wants and their classification into necessaries, comforts, and luxuries.

    Learning Practice

  • 1.8

    Opportunity Cost

    Opportunity cost is the value of the next best alternative that is forgone when making a decision.

    Learning Practice

References

eca9-1.pdf

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What we have learnt

  • Economics examines how soci...
  • Basic economic activities i...
  • Opportunity cost is an impo...

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