Academy, 2006
ECNOMICS OF AGRICULTURE
The word “economics’ is from Greek words oikoc, meaning “family, household, estate” and vouoq, or “custom, law” and hence literally means “household management” or “management of the state”. An economistis a person using concepts and data in the course of employment.
The first of all Economics is social science, which search relations of production in social production and truck order.
All economic questions arise from a single fact “you can’t always get what you want”. The main problem people meet is scarcity. The economics if we look like social science describes and analyze how society chooses from what they have and what they want. So, the basic economics’ problem is scarcity. This problem arises, because resources are scarce, but human wants are unlimited. Such concepts like trade-off remember as that we have something to give up to get in, besides it usually refers to losing one quality or aspect of something in return for gaining another quality or aspect.
Not less important problem is opportunity cost. If you can not have everything that you want, then you have to choose among the alternatives. Let’s take an example: you are supposed to attend a lecture at 8:00 on a Wednesday morning. There are two alternatives to attending lecture: to stay in bed for an hour or to go shopping for an hour. The opportunity cost of attending a lecture for a shopping is an hour of pleasure; the opportunity cost of attending the lecture for a late sleeper is an hour in bed. Our resources are limited. So everything we do for that involves opportunity cost.
Economics is divided into two main branches: Microeconomics, which deals with individual agents, such as businesses and households and Macroeconomics, which considers the economy as a whole.
Factors of production are resources used in the production of...
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