SECTION 1 : ECONOMIC

1/-DEFINITION OF ECONOMIC

Economics is the social science concerned with the analysis of commercial activities and with how goods and services are produced. The field of economics studies how the things people need and want are made and brought to them. It also studies how people and nations choose the things they buy from among the many things they want.

In all countries, the resources used to produce goods and services are scarce. That is, no nation has enough farms, factories, or workers to produce everything that everyone would like. Money is also scarce. Few people have enough money to buy everything they want when they want it. Therefore, people everywhere must choose the best possible way to use their resources and money. Children may have to choose whether to spend their allowance on a film or a hamburger. Shopkeepers may have to choose whether to take a summer holiday or to use their savings to buy more goods. A nation may have to choose whether to use tax-payers' money to build more roads or more submarines. In economic terms, the children, the shopkeepers, and the nation all must economize in order to satisfy their most important needs and wants. This means they must try to use the resources they have to produce the things they most want.

Economists (specialists in economics) define economics as the study of how goods and services get produced and how they are