1. The branch of knowledge concerned with the production, consumption, and transfer of wealth. 2. The condition of a region or group as regards material prosperity. 3. Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses
2. Adam Smith
Smith believed that competition (the belief that everyone should have a fair chance to compete to make, sell, and buy goods and services) was the key to economic success. This means that everyone should have a fair chance to compete to make, sell, and buy goods and services. Smith argued that such free competition would lead to the best goods made at the lowest prices. This would bring economic growth and higher wages as people could make greater profits. Smith described the effect of a free market as an "invisible hand, the effect of a free market guiding people's decisions.," guiding people's decisions. Adam Smith came up with the Invisible Hand in capitalism. He said that if the government doesn't do anything, there's a controlling factor of people themselves who can guide markets. Smith argued that if competition was going to work, governments should not interfere with business. This meant having few laws to regulate business. Smith's ideas came to be known as "laissez-faire" (a French phrase meaning "leave it alone") - the theory that governments should not interfere with business.
The part of economics about single factors and the effects of individual decisions.
Diesel price/ litre
Unleaded price/ litre
5. Macroeconomics--The part of economics concerned with large-scale or...
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