Economics is a social science because it examines the social behavior of human beings with regards to allocation of scarce resources in order to meet the needs of each individual in the society. Economics does not only involve production and distribution of goods and services, but also the human factor.Continue Reading
Economics involves human participation in communicating what their needs and wants are, what the government is doing to ensure the society's needs and wants are met, how production is structured so that it is able to adequately cater to the needs of the society and how rules and regulations are formulated in order to foster a fair exchange of goods and services within the society.
Below are some of the most important factors considered when it comes to economics.
Land: this is a vital factor of production without which a society may end up facing tough times. Land is used for producing raw materials and establishing industrial buildings.
Labor: the main contributors here are human beings. Labor may be in three forms which are mainly unskilled, semiskilled and professional labor.
Capital: before production and distribution can begin, some resources must be available. These resources include factories, infrastructure and transportation equipment, among other things.
Entrepreneurship: this mainly involves human innovation or ability to organize the other factors of production in order to meet set goals or achieve solutions to societal needs with regards to goods and services.Learn more about Economics