In this unit, we shall provide the basic for this scenario i.e. the definition of economic concepts. These concepts have wide range of use in the field of agricultural economics. To that end, the student is encouraged to take time to understand these concepts fully. 5.0. Objectives At the end of this unit, it is expected that you would be able to: I. Define basic concepts in economics II. Apply these concepts to day-day activities III. Relate these concepts to the field of agricultural economics. 6.0. Main body 3.1 Basic Economic Concepts Social Science: There are four main areas of knowledge of studies namely: physical science, natural (biological) sciences, the humanities and the social sciences. Sometimes they are grouped into just two: namely; the natural sciences and the social sciences. The areas of social sciences are fields of learning and research primarily concerned with human relationships. Although no simple definition or categorizations can easily be given to this vast area of knowledge, the disciplines under the group are characterized by their concern for man, his culture and his relationship with his environment. Social sciences are also concerned with intra and inter group relationship as well as individual and group reaction to changes in the environment when they occur. Subject areas
6 in this group include: economics, sociology, political science, history, anthropology, psychology, etc. Economics: The word 'economies' was derived from two Greek words,-oikos' and ‘nemein’ meaning "household management." As the years roll by, the meaning of economics has been broadened to include management of all resources. Economics is therefore a science of how people choose to use their limited resources (land, labour capital), which have alternative use, to produce, distributee and exchange consumer goods and services. Economics can also be defined as the science of how scare resources are allocated among competing ends. Economics is the study of social behavior guiding in the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society. Economics seeks to understand how those individuals interact within the social structure to address key questions about the production and exchange of goods and services. First, how are individual needs and desires communicated such that the correct mix of goods and services become available? Second, how does a society provide the incentives for these individuals to participate in the production of these goods? Third, how is production organized such that maximum-possible quantities are made available given existing resources and production technology? Finally, given that these individuals are at one time involved in the production process and at other times seeking to acquire the goods that have been produced, how are trading rules and exchange agreements established?
- Spring '17
- D. Mambo