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What is the economy?
- The word Economy comes from a greek
word that means “one who manages a
household”
- In a broad sense, Economy is the
systematic study of human action
(objectives, value, means, utility, time)
- Economy is the social science that
studies how to allocate scarce
resources in order to fulfill infinite
human necessities
- Problems:
- Resources are scarce
- the resources available to any
family to satisfy all your needs are
scarce.
- The needs are ilimited
- we have to choose
- We have to choose how we
will use these resources and what
needs we will satisfy.
- We have to choose how we
will use these resources and what
needs we will satisfy.
- The problem is that when we satisfy a need, a new one
arises. That is, the needs are reproduced.
- we have to choose
- Resources are scarce
- Actually, if there were not scarcity of resources or need to choose,
the economy would not exist, because there would be nothing to
administer.
- The economy help us to allocate the scarce
resources to satisfy as many needs as posible
- The economy help us to allocate the scarce
resources to satisfy as many needs as posible
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