Introduction To Applied Economics:

Introduction To Economics
- Economics is the social science of studying the production,
distribution and consumption of goods and services. It is a
complex social science that spans from mathematics to
psychology. At its most basic, however, economics
considers how a society provides for its needs. Its most
basic need is survival; which requires food, clothing and
shelter. Once those are covered, it can then look at more
sophisticated commodities such as services, personal
transport, entertainment, the list goes on. Today, this
social science known as "Economics" tends to refer only to
the type of economic thought which political economists
refer to as Neoclassical Economics. It developed in the 18th
century based on the idea that Economics can be analysed
mathematically and scientifically.
Social Science Of Studying The Production, Distribution And
Consumption Of Goods And Services.
- 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
Scarce resources.
- Are the workers, equipment, raw materials, and organizers used
to produce scarce goods. Like the more general society-wide
condition of scarcity, a given resource falls into the scarce category
because it has a limited availability in combination with greater
(potentially unlimited) productive uses.
Process Of Production. * Distribution
- Is all about factors of production Land
Labor
 Land (acreage and raw materials) Capital
 Labor (unskilled, semiskilled, professional) Description

 Capital (machines, factories, transportation * Customer Satisfaction

equipment, and infrastructure) and
 Entrepreneurship (organizing the other factors of Entrepreneurship & Products
production and risk-taking) Description
Design process
- Accordingly, the combination of Land, Labor, Capital, and Assembly line
Entrepreneurship will lead to the production of Apples, Manufacturing machinery
Wheat, Automobiles, Houses, a Freight Train, Education, or Weekly design reviews
any other good or service. Sapphire materials
Engineers
Production of apples Factory Workers
Metals
4 Factors Petroleum
Land: The natural resources used to make a Marketing
product Ad actors
Labor: The human effort put into making a product Paper
Capital: The tools and skills used to make a product Plastic
Entrepreneur: The business owner that decides how Ink
to put the other three together to give a good or
service to the consumers
Ex .
 Production
 Packaging
 Distribution
 Customer Satisfaction

*Production
Wheat
Land
Labor - An important element, not only in agriculture but in the
Capital general economy of the world, is the price of wheat; for it
decisively influences the prices of other grains, which in
* Packaging turn influence those of meat and of many other
Land foodstuffs, and these ultimately determine the
Labor agricultural price-level itself.
Capital
Example
Description
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