1.

Economics is a social science that studies the ways individuals and groups allocate resources,
including money, buildings, land, time, tools and know-how. Its two major divisions are microeconomics,
which starts with individual decision-making, and macroeconomics, which focuses on the overall result.
Another way to divide economics is by whether it's theoretical or applied. In government, business and
research institutions, economists work in many wide-ranging fields of economics.
2NeedsNeeds are material items people need for survival, such as food, clothing, housing, and
ware[clarification needed]. Until the Industrial Revolution, the vast majority of the worlds population struggled for
access to basic human needs.
Wants[edit]
Wants are effective desires for a particular product, or for something which can only be obtained by
working for it. While the fundamental needs of survival are key in the function of the economy, wants are
the driving force which stimulates demand for goods and services. In order to curb the economic problem,
economists must classify the nature and different wants of consumers, as well as prioritize wants and
organize production to satisfy as many wants as possible.
One assumption often made in mainstream neoclassical economics (and the methods which attempt to
solve the economic problem) is that humans inherently pursue their self-interest, and that the market
mechanism best satisfies the various wants different individuals might have. These wants are often
divided into individual wants (which depend on the individual's preferences and purchasing power parity)
and collective wants (which are the wants of entire groups of people). Things such as food and clothing
can be classified as either wants or needs, depending on what type and how often a good is requested.

3. Land - natural resources e.g. soil, gold

Labour - human resources e.g. labour force
Capital - man made resources e.g machines
Enterprise - organises the above 3 and involves taking the risk of production in a free enterprise economy
4. Here is the the basic economic problems:
What to produce?
How to produce?
And for whom to produce?