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Lesson 1 What is economics?. Economics is a vast subject and precise definitions are usually very complex, it is not a difficult matter to give a simple and sensible answer to the basic question. Economics is essentially a study of the ways in which people apply their knowledge, skills, and efforts to the gifts of nature in order to satisfy their material wants.Economics limits itself to the study of the material aspects of life, and while it is true that man cannot live by bread alone, it is 21

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