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Business LibreTexts

1.3: What Is Economics?

  • Page ID
  • Learning Objectives

    1. Define economics and identify factors of production.
    2. Explain how economists answer the three key economics questions.
    3. Compare and contrast economic systems.

    To appreciate how a business functions, we need to know something about the economic environment in which it operates. We begin with a definition of economics and a discussion of the resources used to produce goods and services.