Introction to eco. ch.1 foe

Introduction to EconomicsIntroduction to Economics

What is Economics ?

Introduction to EconomicsIntroduction to Economics

Economics ( OIKOU +

NOMOS ) is what keeps a nation on its feet. It determines whether or not a nation’s people are educated, well-paid, healthy, and living a good life.

Introduction to EconomicsIntroduction to Economics

Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Introduction to EconomicsIntroduction to Economics

Factors of Production• Land

• Labor

• Capital

• Entrepreneurship

Scarcity means that there are limited resources, and therefore, people must make choices. Look at the pictures on the right. Which pictures show a scarcity?

1)

2)

3)

Introduction to EconomicsIntroduction to Economics

Economics is concerned with the production, distribution, consumption, and investment of goods and services.

Introduction to EconomicsIntroduction to Economics

• A service is any kind of work performed for others.

• A good is something you can feel, or any kind of merchandise.

Look at the pictures on the right. Which of these pictures show goods and which ones show services?

1)

2)

3)

4)

Definition of EconomicsDefinition of Economics

According to Samuelson, “ Economics is the study of how man and society choose to employ scarce productive resources which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in the future among various people and group of society.”

What Is Macroeconomics?What Is Macroeconomics?

Macroeconomics deals with questions about variables that

describe the economy of an entire nation.

What Is Microeconomics?What Is Microeconomics?

Microeconomics deals with questions related to individual economic agents, such as households and

firms.

Business economics

According to Spencer and Siegelman, “ Business economics may be defined as the integration of economic theory which business practice for the purpose of facilitating decision making and forward planning by management.”

Difference between Economics and Business Economics

• Meaning

• Nature

• Scope

• Basis of Analysis

• Aspects

• Analysis of problems

• Development and period of development