The word economy comes from the word oikonomos which means “ one who manages a household.” At first this origin might seem peculiar. But in face households and economics have much in common. A household faces many decisions.It must decide which members of the household do which tasks and what each member gets in return Who cooks dinner? Who does the laundry? Who gets the extra dessert at dinne? Who gets to choose what TV show to watch? In short the household must allocate its scarce resources among its various members, taking into account each member’s abilities, efforts, and desires. Like a household , a society faces many decisions. Society must decide what jobs will be done and who will do them. It needs some people to grow food other people to make clothing, and still others to design computer softwer Onece society has allocated people (as well land, buildings, and machines) to various jobs, it must also allocate the output of goods and services t...