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Introduction to Economics Concepts

The document provides an overview of economics, defining it as the study of how people use limited resources to satisfy unlimited wants. It distinguishes between microeconomics, which focuses on individual economic units, and macroeconomics, which studies the economy as a whole. The learning outcomes include the ability to define economics and differentiate between its two branches.

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14 views14 pages

Introduction to Economics Concepts

The document provides an overview of economics, defining it as the study of how people use limited resources to satisfy unlimited wants. It distinguishes between microeconomics, which focuses on individual economic units, and macroeconomics, which studies the economy as a whole. The learning outcomes include the ability to define economics and differentiate between its two branches.

Uploaded by

Abu Sabil
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

MICROECONOMICS

AND
MACROECONOMICS
Let's start with the first set of slides
Have fun!
3

Learning Outcomes
At the end of the topic, you will be able to:
Define economics and,
Distinguish between microeconomics and macroeconomics
4

“Economics is the science which studies


human behavior as a relationship
between given ends and scarce means
which have alternative uses”
Lionel Robbins, former London School of Economics professor
5

Introduction
✘ Economics is the most important aspect in human life.
✘ The desire of human beings is unlimited and they will
try as hard as possible to fulfill their demand to
maximize satisfactions.
✘ However, economics faces limited resources or factors
of production.
✘ Economics study how people fulfill their unlimited
desire with the limited resources.
6

Definition of Economics
✘ According to L. Robbins, K.E Case and R.C Fair, the
economics is a study of how people use their limited resources
to try fulfill unlimited wants and involves alternatives or
choices.
✘ And, David N. Hyman defined economics as a study of how
scarce resources are allocated among alternatives uses.
✘ In summary, economics is defined as ‘a social science that
studies how people and society organize scarce and limited
resources to satisfy unlimited human wants’
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Definition of Economics (Con't)

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8

Big concept
9

Definition of Economics (Con't)

Limited Resources Society must make a


vs choice on how to use
Unlimited Wants the factors of
production to
minimize wastage
10

What are the branches of


economics?

Microeconomics
Macroeconomics
11

Microeconomics vs Macroeconomics
Microeconomics Macroeconomics
✘ Studies individual and specific ✘ Studies economics as a whole
economic units ✘ Analyses the economic unit in general
✘ Analyses the economic entity in detail ✘ Looks at entire or aggregate aspects
✘ Looks at the individual unit ✘ Examples;
✘ Examples;
- Production; GDP, GNP, aggregate
- Production; individual, firm and industry demand and aggregate supply

- Prices; individual goods & services - Prices; CPI or inflation

- Income; distribution among factors of - Income; total wages and salaries


production
- Employment; total employment and
- Employment; household supply of labour unemployment
12

What are your needs and wants?


Do you have enough resources to achieve what you want?
13

The End

our office
14

Thanks!
Any questions?
You can find me at:
syikin109@[Link]

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