1. Economics is a social science that studies the ways individuals and groups allocate resources, including money, buildings, land, time, tools and know-how. Its two major divisions are microeconomics, which starts with individual decision-making, and macroeconomics, which focuses on the overall result. Another way to divide economics is by whether it's theoretical or applied. In government, business and research institutions, economists work in many wide-ranging fields of economics.2NeedsNeeds are material items people need for survival, such as food, clothing, housing, and ware[clarification needed]. Until theIndustrial Revolution, the vast majority of the worlds population struggled for access to basic human needs.Wants[edit]Wants are effectivedesiresfor a particular product, or for something which can only be obtained by working for it. While the fundamental needs of survival are key in the function of the economy, wants are the driving force which stimulates demand for goods and services. In order to curb the economic problem, economists must classify the nature and different wants of consumers, as well as prioritize wants and organize production to satisfy as many wants as possible.One assumption often made in mainstreamneoclassical economics(and the methods which attempt to solve the economic problem) is that humans inherently pursue theirself-interest, and that the market mechanism best satisfies the various wants different individuals might have. These wants are often divided intoindividual wants(which depend on the individual'spreferencesandpurchasing power parity) andcollective wants(which are the wants of entire groups of people). Things such as food and clothing can be classified as either wants or needs, depending on what type and how often a good is requested.

3. Land - natural resources e.g. soil, goldLabour - human resources e.g. labour forceCapital - man made resources e.g machinesEnterprise - organises the above 3 and involves taking the risk of production in a free enterprise economy4. Here is the the basic economic problems:

What to produce?How to produce?And for whom to produce?