economics is concerned with the way people use the resources of the word in seeking to achieve the living standard which they desire.
the basic problems of economics evolving decisions between alternative ways of using the word resources are common to every each and every type of society.
these problems did not change mainly because some people form societies which they called capitalist and others form societies which they call communist.
as you all know we have societies are call capitalist and also we are societies that call communist but if there is difference exists between the two.
although the way people set about solving these problems and and their achievement basic will of course differ greatly.
The economist has to recognise these differences but he must always remember that the problems themselves remain fundamentally the same.
their survival and development of any community depend upon his ability to use the resources at his disposal to produce does goods and services which it considers essential to his needs
the total volume of goods and services actually produced form that community production or product.
the total product of any country must be shared or distributed among the population living in that country. Not partially to a certain group or population in the country that the government felt they should distribute to but among the population living in that country.
Let us look at these example of these two Nation. Nation A and Nation B as a illustration.
if Two Nations A and B each of the same volume of production and if country A has double the population of country B then ignoring any possibility of trade between the countries and a looming that the goods produced are Shared fairly throughout the two populations, we can see that a person in country A can received only have the goods available to a person in country B.
on this assumptions it could be said that people in country A add a lower standard of living than people in country B.
whenever we wish to consider the living standard of a nation, we must look at the total production of goods and services and at the size of the population which has to share this total product.
the living standard of a community rise if the volume of goods and services available for use increases faster than the size of the population wishing to use them.
it is also necessary for people to have the time and opportunity to make use of the product available. leisure is an important element in the standard of living.
it is important not only because individuals follow ledger for his own sake but for the opportunities it gives to govern their lives as they wish. but also because the way people use their leisure most influence the range of goods and services which organisation produced.
firms have to adapt to changing conditions are most try to predict the choices which people are likely to make in the future so that they can plan their production schedules in accordance with the public demand for goods and services.
if a company persist in making fountain pens when most people prefer to use ball-point or felt pens it is likely to go out of business or rather the business will eventually go down.
let us look at the example of a football club also. Football clubs must take into account and take advantage of the desire of an increasing number of fans to take a more active part in supporting their local club than simply watching matches.
few organisations do they can afford to ignore the way in which people choose to spend their leisure. there is some evidence to show that many people decide the level of Ennis they wish to achieve in order to leave at a particular standard.
when these levels which they take higher living standard in the form of more spare time on the other hand during periods of economic difficulty especially when prices of goods are rising rapidly many workers give up some of their lives and work longer hours in order to maintain the purchasing power of their earnings
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