MGT Notes

Reference, ‘Principles of Economics,’ by N. Gregory Mankiw, 3e, Pg 3

The meaning of the word ‘Economy’ comes from Greek for ‘one who manages a household,’ since both households and economies have much in common. Both work to allocate scarce resources. An economy has to decide what jobs will have to be done, who will do them and who gets the benefit of the output. Performing the management of society’s scarce resources is thus known as ‘Economics’.