Economics, Investment and Taxation

Module 1

Essence of Economics

Economics - A social science essential for managing scarce resources to satisfy unlimited human wants and needs

Factors of Production

  • Land

  • Labor

  • Capital

  • Entrepreneurship

  1. Land

  • covers all natural resources that exist without man’s intervention

  • encompasses all things derived from the forces of nature

  • irreproducible

  1. Labor

  • Human inputs

  • Manpower

  • Skills used in transforming resources into different products that meets our needs

  1. Capital

  • Man-made factor of production used to create another product

  • Machinery 

  • Equipment

  1. Entrepreneurship

  • Integrates land, labor, and capital to create new products

Needs vs Wants

Needs - things we cannot live without

Wants - are all non-essential things we can live without

    Factors Affecting Unlimited Human wants

  1. Increase in population

  2. Changing taste and preference

  3. Increase in income

  4. One-time speculation of consumers

Scope of Economics