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The social nature of economics
Economics studies how human beings use their limited resources to satisfy their infinite needs and wants and how they improve their economic well-being.
‘Social' because it deals with human society , interdependence and behavior
‘Science' because it uses a scientific method to explain economic events and to try to predict economic outcomes likely to occur in the future.
One of the most Important Assumptions in Economics is Ceteris Paribus.
All other things being unchanged or constant
If the price of beef increases, ceteris paribus, people will purchase less beef.
If the United States drilled for oil off of its own shores, ceteris paribus, the price of gasoline in the United States would drop significantly.
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