Definition of Economics 1 Economics is the subject of exchanging the need for an unlimited resource with a limited number of resources, where such exchange is possible only when there is a favorable return. 2 3 P X Q = Revenue/Price 4 5 6 Equilibrium 7 Demand 8 Supply Economic System 1. Business sector and household sector 2. Finance and banking sector 3. Government sector 4. Overseas sector 9