Economics is the the study of how societies use scarce resources to produce valuable commodities and distribute those commodities among various people. and another term , Economics examines how people use scarce resources to produce and consume goods and services. The technologies that are transforming our homes are also revolutionizing our farms, mines factories, offices and shops. As a result, millions of traditional jobs have gone and millions of new jobs been created. These facts raise the first set of important questions that economics can answer some flowing Questions:
- How does technological change affect, and what we consume?
- How does technological change affect the jobs we do and the way work? Film stars, pop singers.outstanding sports men and women lawyers, doctors and the directors of big companies can earn huge incomes, while petrol pump and supermarket cashiers, day- care workers and cleaners earn just a few pounds an hour. On average, men cam more than women and white workers earn more than workers from ethnic minorities. In many rich European countries, up to 20 per- cent of people living in poverty .These facts raise a second set of important questions that economics can answer :
- What determines incomes?
- What factors affect poverty?
- Why are women and ethnic minorities persistently paid less than men even when they do similar jobs?