Introduction to Economics
Definition of Economics
Economics is the study of how individual and societies chooses to use scarce resources to satisfy their needs and unlimited human wants. It also includes the way in which society chooses how to allocate means of production and resources between alternative uses. The study of economics therefore has to deal with society and choice.
History of Economics
Economics come from the Greek word (Oi-konomia). It means the art of housekeeping. The Greeks were not too interested in the studying of business and economic decisions of government. They lived in small city-states that had its own way of making rules and choosing government. Economics as the subject originated in the 18 Centaury with the publications of Adam Smith’s “The Wealth of Nations”. He is known as “the father of Economics”.
Reasons for the Studying Economics and Its Implications
It helps us to understand why people around us behave the way they do.
It helps us different fields of work since many jobs require economics knowledge. E.g. Accountants, Managers, Governments Advisors, Tax Consultants etc.
It helps us to understand the actions of governments and business organizations.
It allows us as individuals to play a more active role in the workplace and the community.
Resource management is the process by which businesses manage their various resources effectively. Those resources can be intangible – people and time – and tangible – equipment, materials, and finances. It involves planning so that the right resources are assigned to the right tasks.
Role of Economists
Economists are experts in economics; they research on issues such as:
Effect of changes on tax rates.
The relationship between interest rate and investment
Ways of reducing unemployment
Developing theories and models that predict or explain behaviour of individual and business