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:
1. Resources are scarce
  2. the resources available to any family to satisfy all your needs are scarce.
2. The needs are ilimited
  1. we have to choose
    1. We have to choose how we will use these resources and what needs we will satisfy.
  2. The problem is that when we satisfy a need, a new one arises. That is, the needs are reproduced.
Actually, if there were not scarcity of resources or need to choose, the economy would not exist, because there would be nothing to administer.
1. The economy help us to allocate the scarce resources to satisfy as many needs as posible

Resource summary

	Created by CCHR CCHR over 6 years ago