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Economics as a subject deals with the allocation of scarce resources among humans with unlimited wants. For production, raw materials are used as inputs and processes through machinery using physical labour to convert into finished products. This is then taken to the market and buyers and sellers come to an exchange agreement at a particular price.
As economies got more and more complicated a government body was formed. Proper rules and regulations and law and order are imposed which makes economic agents invest in land, buy machinery and undergo production processes to make money. The government keeps economic stability in place along with intervening in the private market so that the economic pie gets distributed as fairly as possible.
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