ABSTRACT
This chapter deals with the objectives of economics within the framework of the business environment. It delineates that business environment with these objectives in mind. Political developments in market areas, technical innovations, major shifts in customer demand and changes in work ethics all have a major effect on companies. The economic conditions under which the management of an airline have to operate are crucially important. Human beings need things like food, warmth, shelter, safety and self-development. Human needs are virtually unlimited, while production is limited by the availability of resources like land labour, and capital. The excess of human needs over what can be produced is termed scarcity. Resources such as raw materials, machines and labour, which are used in the production of goods and services can be used for a variety of purposes. Labour can, for example, be used for the production of food, consumer electronics, education or safety.
