Economics terminologies

What Economics Studies

Generally, the subject matter tells us about what we study in Economics. However, for the sake of conveniences, economics is concerned with the following:

1. It is concerned with how human being earns their living through exchange i.e. it is concerned with how man employs scarce resources to satisfy material wants.
2. It deals with production, distribution, exchange and consumption of goods and services.
3. It also deals with human activities which involve selling and buying. It doesn't deal with goods and services that man produces for the sake of self-satisfaction.

These goods and services must have exchange value a part from satisfying human wants.