ECONOMICS – BETTER UNDERSTANDING NOTES
These notes are designed to give a clear and simplified understanding of Economics. They cover
key concepts, definitions, diagrams (explained in words), and examples commonly required in
secondary school and introductory college-level Economics.
,1. Introduction to Economics
Economics is a social science that studies how individuals, households, firms, and governments
make choices on how to use scarce resources to satisfy unlimited human wants.
Key Economic Concepts
• Scarcity: Resources are limited, but human wants are unlimited. • Choice: Due to scarcity,
people must choose among alternatives. • Opportunity Cost: The value of the next best
alternative forgone when a choice is made.
, 2. Branches of Economics
Economics is divided into several branches to make study easier.
Main Branches
1. Microeconomics – Studies individual units like households and firms. 2. Macroeconomics –
Studies the economy as a whole, focusing on inflation, unemployment, and national income. 3.
Development Economics – Studies economic growth and development, especially in developing
countries.
These notes are designed to give a clear and simplified understanding of Economics. They cover
key concepts, definitions, diagrams (explained in words), and examples commonly required in
secondary school and introductory college-level Economics.
,1. Introduction to Economics
Economics is a social science that studies how individuals, households, firms, and governments
make choices on how to use scarce resources to satisfy unlimited human wants.
Key Economic Concepts
• Scarcity: Resources are limited, but human wants are unlimited. • Choice: Due to scarcity,
people must choose among alternatives. • Opportunity Cost: The value of the next best
alternative forgone when a choice is made.
, 2. Branches of Economics
Economics is divided into several branches to make study easier.
Main Branches
1. Microeconomics – Studies individual units like households and firms. 2. Macroeconomics –
Studies the economy as a whole, focusing on inflation, unemployment, and national income. 3.
Development Economics – Studies economic growth and development, especially in developing
countries.
