WHAT ECONOMICS IS ABOUT
Learning Thit1
(LOI) • economics = Study of how scare resources are allocated to satisfy human needs
"°" why is Economics a social science 8. it is a social science b/c it studies human behaviours
• It is a science as it is used for explanation, predication and
Policy related decisions
(103)
• MICRO-ECONOMICS-or focuses on individual parts of the economy
• MACRO-ECONOMICS-focuses on the economy as a whole
404, • Positive Economics = objective and factual statements, what is
• Normative Economics = a branch of economics that expresses opinions,
i
or value judgements. what ought to be
105)
• SCARCITY = the resources avaliable are insufficient to satisfy peoples 'wants.
→ therefore there are unlimited wants and limited Resources
scarcity results in choices being made
• CHOICES = the act at making a decision between two or more possibilities
everytime a choice is made. opportunity
• costs happen
• OPPERTUNITY COSTS = sacrificing something in order to gain mother
WANTS = human desires
NEEDS = human essentials
DEMANDS = wants that are supported by a need and the ability to buy
Learning Thit1
(LOI) • economics = Study of how scare resources are allocated to satisfy human needs
"°" why is Economics a social science 8. it is a social science b/c it studies human behaviours
• It is a science as it is used for explanation, predication and
Policy related decisions
(103)
• MICRO-ECONOMICS-or focuses on individual parts of the economy
• MACRO-ECONOMICS-focuses on the economy as a whole
404, • Positive Economics = objective and factual statements, what is
• Normative Economics = a branch of economics that expresses opinions,
i
or value judgements. what ought to be
105)
• SCARCITY = the resources avaliable are insufficient to satisfy peoples 'wants.
→ therefore there are unlimited wants and limited Resources
scarcity results in choices being made
• CHOICES = the act at making a decision between two or more possibilities
everytime a choice is made. opportunity
• costs happen
• OPPERTUNITY COSTS = sacrificing something in order to gain mother
WANTS = human desires
NEEDS = human essentials
DEMANDS = wants that are supported by a need and the ability to buy
