1) The document discusses two big economic questions: what determines how goods and services are produced, and how self-interest and social interest can be aligned. 2) It examines factors of production like land, labor, capital and entrepreneurship that are used to produce goods and services. Income is earned through these factors. 3) The second question is about how pursuit of self-interest can promote social interest through efficient resource use and reducing depletion, helping society.

1. Tow big economic questions
• Now we want to determine the scope of economics by
tow important questions:
• 1_ how do choices determining What , How and For
Home goods and services are produced ?
• 2_ how can our choices makes self interest and social
interest going hand by hand ?
• In first question we talk about good and services , then :
• what G&S we produce , what determines the patterns of
production and how choices determines quantities of
production?

2. Tow big economic questions
• How ? Then we talking about factors of productions
that we use to produce G&S .
• Factors of productions are :
• 1_ Land
• 2_ Labor
• 3_ capital
• 4_ entrepreneurship
• We called Land is “ gift of nature “ we meant with
what it is include of oil , minerals , coal , air etc….

3. Tow big economic questions
• Labor is the work time and work effort that people
take to producing G&S.
• And its includes physical and mental efforts .
note : quality of labor depends on human capital which
is the knowledge , skills that people obtain from
education , job training and experiences .
• Capital : we talk about tools , instruments , buildings
constructions , etc…
Note :capitals we means any assets that uses in
physical production . (not financial assets ).

4. Tow big economic questions
• Entrepreneurship we mean the humans
resources that uses the organize and factors of
productions , such take business decisions
and ideas about what and how to produce.
• For home ? Who consumes our G&S ?
• The people consumptions depends on the
income that they earn .

5. Tow big economic questions
Note : people earn incomes from selling services of
factors of productions that they owned .
1_ they got from land as earn “rent”
2_ from Labor “wage”
3_ from capital “interest”
4_ entrepreneurship “ profit”
So as the have high income they are able to consume
more and more of G&S .

6. Tow big economic questions
• The second question is talking about how the pursuit
of self interest promote the social interest?
• Self interest promote social interest if and only if the
self interest lead to outcomes that are best to all
society , such as using resources efficiently and
effectively when G&S are produced.
That will help to reduce of natural resources depletion
and global warming too.

7. the economics way of thinking
• Trade-offs :
• Giving some thing to get something else.
Opportunity cost :
Opportunity of some thing the highest valued
alternative that we must to give up to get it .
Example:
Care #1 priced 2000$ , care#2 priced 3000$ , car#3
priced 1000$
If I got car # 2 then its opportunity cost for it is the
value of “ car # 3 that valued by 3000$”

8. Advices
• To under stand economics is concerns with
logical thinking an pure ones , so clear your
mind and lunch your mind with .
• Always link the idea with the realty and you
will understand .
• So what if that you have difficulties with ,
don’t giving up just focus , then you will see
how much its easy to get .