INTRODUCTION TO ECONOMICS: Key Concepts and Study Notes
AUTHOR: Gracy
TABLE OF CONTENT
1.Definition of Economics
2.Types of Economies
3.Demand and Supply
4.Market Structures
5.Inflation and Unemployment
6.Key Formulas and Examples
1. Definition of Economics
Economics is the study of how individuals, businesses, and governments make choices to
allocate scarce resources.
Microeconomics: Study of individuals and firms
Macroeconomics: Study of the economy as a whole
2. Types of Economies
Traditional Economy: Decisions based on customs and traditions
Command Economy: Government controls resources and production
Market Economy: Decisions made by individuals and businesses
Mixed Economy: Combination of market and government control
Example:
Nigeria has a mixed economy — mostly private businesses with some government
regulation.
3. Demand and Supply
Law of Demand: As price falls, quantity demanded rises
Law of Supply: As price rises, quantity supplied rises
Equilibrium Price: Price where quantity demanded equals quantity supplied
Example Problem:
AUTHOR: Gracy
TABLE OF CONTENT
1.Definition of Economics
2.Types of Economies
3.Demand and Supply
4.Market Structures
5.Inflation and Unemployment
6.Key Formulas and Examples
1. Definition of Economics
Economics is the study of how individuals, businesses, and governments make choices to
allocate scarce resources.
Microeconomics: Study of individuals and firms
Macroeconomics: Study of the economy as a whole
2. Types of Economies
Traditional Economy: Decisions based on customs and traditions
Command Economy: Government controls resources and production
Market Economy: Decisions made by individuals and businesses
Mixed Economy: Combination of market and government control
Example:
Nigeria has a mixed economy — mostly private businesses with some government
regulation.
3. Demand and Supply
Law of Demand: As price falls, quantity demanded rises
Law of Supply: As price rises, quantity supplied rises
Equilibrium Price: Price where quantity demanded equals quantity supplied
Example Problem:
