Basic Concepts of Economics

Man – made resources, such as machines and factory buildings.

Business know- how; the ability to make decisions and take risks in a business.

Person who buys and uses goods and services to satisfy his or her wants.

The benefit of the next best alternative foregone because of a particular choice.

The central problem in Economics

Human resources; another name for workers.

Using up of goods and services to satisfy human wants.

When statement is based on facts and events.

The branch of Economics dealing with the functioning of individual industries/ individual economic decision - making units

It is the study of how individuals and societies choose to allocate scarce resources among alternative uses in an attempt to satisfy their unlimited wants.