Every system created by man either has its own objectives, the relationship of man to material goods, as a maker or as a consumer, is a communal motion. Every country needs to study its resources, from goods to services that have to produce, and in what quantities, considering the allocation of the product. It is necessary for every government to act as researcher in every resource its country has, either natural or fabricated products, in order to nurture and distinguish the proper allotment of commodities to its community, thus Economics is required.
Economics is the study of how societies efficiently use resource to produce valuable commodities and distribute them to satisfy the needs and wants of their member. In Social Science, it is the study of production, distribution and consumption of goods and services for the maximum satisfaction of human wants. Its method are scientific, it is a classified and systematized body of knowledge, concerned with the classification, generalization and logical arrangement of economic measures and of the principles and laws that concern the relationship between man and wealth. The use of scarce resources is concerned on how to obtain the utmost contentment of the infinite material wants of society. Scarcity refers to the condition wherein most things people wants are available only in limited supply. Economic Goods, is anything, either a physical commodity or a service which yields utility and could command a price if brought or sold in the market. Unlimited Wants refers to the person's desires or preferences for particular ways for satisfying basic needs. The cost of choosing to use resources for one purpose measured by the sacrifice of the next best option for using those resources is Opportunity Cost.
Economics divided into two branches: the Macroeconomics, it deals with the activities of the whole economy or its aggregates such government, business and the like. It is concern about the gross national product, level of production, unemployment rate and poverty occurrence. Another branch, is the Microeconomics, it deals with the performance of individual units or definite segments of the whole economy, such as; firms, single consumer or business, price of single commodity and so on. This branch deals with the divisions; Production, the process of manufacturing goods needed by the people to satisfy their desires. Consumption, it is the proper use of goods and services to different outlet, for allocation to individual consumers. Exchange, it is the process of transferring goods and services from one person to another in trade for something. Public Finance, it is the activity of the government regarding taxation, borrowings and expenditures.
The country's economy depends on how leaders perform their duties in order to build a strong relationship to its community. People need a government that deals with their necessities, such as foods, clothing, shelter and security. That is how economics is important to every one of us.
