Basic Definition of economics:

• It is a science that manages of scarce resources in demand.

Other definitions of economics:

• It is a scientific study, which deals with how individuals and society generally make choices. Individuals and groups in society have innumerable wants. To satisfy those wants, there are resources that can be used. These resources are not freely available. They are therefore scarce and they have alternative uses. Such uses may also apply between now (today) and tomorrow (the future). Therefore, a dimension of choice includes present and future use of available resources. Moreover, the uses of these resources carry with them costs and corresponding benefits. COncern with costs and benefits require efficiency in resource use.

•Economics also means science of economy or wealth and is concerned with human behavior and human activities especially business activities.

• Economics is the science that deals with the study of allocationg scarce resources to satisfy inlimited human wants.

• The study of how individuals and societies choose to use the scarce resources that nature and previous generations have preovided.

• Economics is behavioral, or social, science.

•It is the study of how people make choices; the choices that people make, when added up translate into societal choices.

• Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

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There are four factors of production naming, Land, Labor, Capital Entrepreneur. I have included here the first two factors (Land & Labor) and the remaining two (Capital & Entrepreneur) will be posted later this week.

Land (rent)

•It refers to all natural resources, which are given by and found in nature, and are, therefore, not man made to be use in production.

• It does not mean only the soils or the ground surface but it refers to all the things and powers that are given free to mankind by nature. In this sense, land includes all the materials and things which are available beneath the soil or above. It includes forest, mountains, rivers oceans, minerals, air, and sunshine; light etc. the owner of land (land-owner) gets rent as a reward for the productive services of the land.

• Thus, people who own land and offer it to others for their use, earn an income called rent.

• This is can also classified as fixed resources.

Labor (Salary/Wages)

• It is any form of human effort exerted in the production of goods and services.

• Labor covers a wide range of skills, abilities, & characteristics.

• It includes the accountant, economist, nurse, typists, and other numerous people who leave their homes in the morning to be in time for their 8-hour work.

• The supply of labor in a country is dependent on its population and on the percentage of this population that us willing to join the labor force. Naturally, a country with high population growth is expected to come up with a bigger labor supply.

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