Intro to Economics PART 1.pdf

INTRODUCTION TO ECONOMICS PART I OBJECTIVES: STUDENTS SHOULD BE ABLE TO... #1 #2 #3 Define economics and Differentiate the following Distinguish the features of the economic terms....

INTRODUCTION TO ECONOMICS PART I OBJECTIVES: STUDENTS SHOULD BE ABLE TO... #1 #2 #3 Define economics and Differentiate the following Distinguish the features of the economic terms. microeconomics economic perspective. Explain the importance of from Describe the role of supply and demand in macroeconomics. economic theory in influencing the decision Relate current events economics making of economic thinkers. to economic theory. FUNDAMENTAL QUESTIONS OF ECONOMICS; For whom? What to produce? How to produce?  4 PICS 1 WORD E C O N O M I C S  “ECONOMICS” 1 2 Economics is a 3 It is a social science Is a branch of social. concerned with the science that deals broad ranging production, with a study of a discipline, both distribution, and man how could best consumption of goods in the questions allocate and utilize and services. It studies the scarce of the it ask and the how individuals, society to satisfy methods it uses businesses, governments, and the unlimited to seek nations make choices wants. answers. about how to allocate resources. ECONOMICS AS SOCIAL SCIENCE... 1 2 Study of It study society and how people human behave and behavior influence the world around them  “YOU CAN’T ALWAYS GET WHAT YOU WANT” — For most people that there are limits to what you can have or do is a simple fact of life learned in early childhood. MICROECONOMICS VS MACROECONOMICS  MICROECONOMICS -it is a branch of economics -the study of small -the study of individuals, that deals with the behavior economic units how households and firms behavior in of individual economic units( households and firms decision making and allocation of consumers, firms, workers, make decisions and how resources. it generally applies to and investors as well as the they interact in markets markets of goods and services markets that these units and deals with individuals and comprise). economic rules.  MACROECONOMICS -It is a branch of economics -the study of large economic measures as total that deals with aggregate economy as a whole outputs, total employment, economic variables, such as rather than individual total income, aggregate the level and growth rate of economic units that make expenditures, and the national output, interest up the economy. general level of prices in rates, unemployment and analyzing various economic inflation. problem. Imagine you have just finish taking a bath, but suddenly happened at the same time. What will you address first? Number 1-3 based on your prioritization. THANK YOU! See you next meeting