Economics Defined

Economics Defined - free resource or good. Economics,...

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Economics Defined What is economics?  Economics  is the study of how society allocates scarce resources and goods.  Resources  are the inputs that society uses to produce output, called  goods . Resources include  inputs such as labor, capital, and land. Goods include products such as food, clothing, and housing  as well as  services  such as those provided by barbers, doctors, and police officers. These  resources and goods are considered  scarce  because of society's tendency to demand more  resources and goods than are available.  While most resources and goods are scarce, some are not—for example, the air that we breathe. A  resource or good that is not scarce, even when its price is zero, is called a 
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Unformatted text preview: free resource or good. Economics, however, is mainly concerned with scarce resources and goods. It is the presence of scarcity that motivates the study of how society allocates resources and goods. One means by which society allocates scarce resources and goods is the market system. The term market refers to any arrangement that allows people to trade with one another. The market system is the name given to the collection of all markets and also refers to the relationships among these markets. The study of the market system, which is the subject of economics, is divided into two main branches or theories; they are macroeconomics and microeconomics ....
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This note was uploaded on 11/18/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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