The Nature Of Economic Problem - Factors of Production

Economics is a social science concerned with the production, distribution, and consumption of goods and services.

1. The Nature of Economic
Problem
Economics
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2. Discussion
Points
Finite Resources & Unlimited Wants
Economic and Free Goods

3. What is Economics?
Economics is a social science concerned with the production, distribution, and
consumption of goods and services.
It studies how individuals, businesses, governments, and nations make choices
on allocating resources to satisfy their wants and needs, trying to determine
how these groups should organize and coordinate efforts to achieve maximum
output.

4. WHAT IS
THE ECONOMIC
PROBLEM?

6. The economic definition of a need is something needed to survive. In economics,
the idea of survival is real, meaning someone would die without their needs being
met. This includes things like food, water, and shelter.
A want, in economics, is one step up in the order from needs and is simply
something that people desire to have, that they may, or may not, be able to obtain.

7. Factors of Production
Resources are used to make goods and to provide services.
Production therefore involves using resources to make and sell goods and
services to satisfy our wants.
Resources are the inputs to productive activities and goods and services are
the outputs.
Any activity that fails to satisfy a want is not a productive activity according to
economist.

8. Factors of Production
The people who make and sell goods and services are known as producers.
Scarce resources used up in the production of goods and services to satisfy
our wants are known as factors of production.
Factors of production are the inputs needed for the creation of a good or
service.
The factors of production include land, labor, enterprise, and capital.

9. Land
Labour
Enterprise
Capital

12. Thank You