Basic Concepts

Economic activities involve all actions aimed at satisfying human needs and include the processes of production, consumption, and distribution.

Sectors of the Economy

The economy is divided into three main sectors: Primary, Secondary, and Tertiary. These sectors represent different stages of economic activity.

Basic Concepts in Economics

1. Scarcity: Resources are limited, leading to the need for choices and trade-offs.
2. Opportunity Cost: The cost of the next best alternative foregone when making a decision.
3. Supply and Demand: Fundamental principles determining prices in markets.
4. Economic Systems: Frameworks for organizing economic activities, including production, distribution, and consumption.

Types of Economies

1.

1. Economics is the study of how individuals, businesses, and governments allocate scarce resources to satisfy their needs and wants.
2. It examines the production, distribution, and consumption of goods and services.
3. Originates from the Greek words "oikos" (household) and "nomos" (management), meaning household management.
4. Defined by Adam Smith as the study of wealth creation and distribution.
5. Modern definition by Lionel Robbins: Economics is the study of hum