hello and welcome today we are going to deal with economics chapter introduction to economics if you have not already subscribed to this channel hit the subscribe button and let's learn about money let's get into this class in our life we have two things needs and wants so what are needs need is something that one should always have something without one cannot live for example food clothing and shelter what is want want is a good or service that is not essential for living we may desire or wish to have them to satisfy ourselves for example eating outside accessories etc so let's learn a little bit more about goods and services let's deal with goods first goods are items that are tangible which we can touch hold for example books car cups etc goods can be further classified into consumer goods capital or producer goods private goods or public or social goods let's look into each of these consumer goods which are directly used for final consumption purpose for example food and clothes then what are capital or producer goods goods which are used not for direct consumption but for producing other consumer goods they are also called as intermediate goods such as machines tools and so on what are private goods these goods are sold to the public by private firms like for example cars books pens etc what are public or social goods these goods are offered by the government free of cost for example public park infrastructure etc let's look into services services are actions taken or performed by someone else like medical check-ups food delivery car repair car washing and so on they are intangible in nature that means it cannot be touched and seen let's move on to human activity what are human activities there are two types of human activity one economic the other non-economic so what comes under economic in the economic human activity the intention is to earn money in the non-economic activities the intention is not to earn income but doing something out of love respect and charity best example is mother teaching her child at home a mother cooking for her child at home moving along let's look at the origin of economics the word economics comes from a greek words oikus and nomus oikos meaning household nomus meaning management economists have defined economics based on different parameters which can be classified as followings well definition welfare definition scarcity definition growth definition and modern definition let's look at each of these professor adam smith is called as father of economics please remember this professor adam smith is called as father of economics according to him economics is a science which inquires into the nature and cause of wealth of nation welfare definition we have professor alfred marshall who defines economics is a study of mankind in the ordinary business of life scarcity definition is given by professor lionel robbins he says economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative use just remember these few words because when you're going to learn the definition from your textbook it will be very helpful moving along the growth definition professor p a samuelson says economics is a social science concerned with the way of society chooses to employ its resources a society uses its resources modern definition is given by professor asidas he says economics is the study of choice making by individuals institution societies nations and globe under the conditions of scarcity and surplus towards maximum benefits satisfying their unlimited needs at present and future finally let's look at the key concepts of economics we have consumer so who is a consumer an individual who buys various goods and services to satisfy his or her wants consumption the act of a consumer which is concerned with the use of various goods and services who is a producer an individual who is involved with the activity of producing goods production it's an act of a producer to produce various goods and services utility the capacity of a commodity to satisfy human wants exchange act of selling buying and services what are factors of production the resources of society which are used in the process of production like land labor capital etc factors of income factors of incomes is a way of getting income from rent wage interest profit etc investment the purchase of goods that are not consumed today but are used in future to create wealth for example is buying a plot of land is an investment for your future savings excess of income over expenditure is called as savings that means you save more than you spend the last two micro micro is small macro is big okay so micro economics is concerned with the activities of individual units macro is concerned with the economy as a whole study of national income employment etc so that's it for today watch this couple of times i'm sure you'll be great at basics of economics if these classes are helping you hit that like button and let me know about it see you next time take care thank you very much