BRIGHT MINDS SKILLS
ACADEMY
THE EASY WAY REVISED EDITION 2018
, Bright Minds Skills Academy Book a lecturer / exam
pack:0834259100
The following exam packs are available
Code Description
FAC1502 Introduction to Financial
Accounting
FAC1601 Financial Accounting
Reporting
ECS1501 Economics 1A
ECS1601 Economics 1B
QMI1500 Elementary Quantitative
Methods
MNB1501 Management of Business 1
MNB1601 Management of Business 2
AIN1501 Accounting Systems in a
computer environment
CLA1501 Commercial Law
Code Description
ECS2601 Microeconomics
ECS2602 Macroeconomics
MNE2601 Introduction to
Entrepreneurship
MNG2601 General Management
IOP2601 Industrial Research
Psychology
ECS3701 Monetary Economics
ECS3702 International trade
ECS3703 International Finance
MNG3701 Strategic Planning 3A
1
, Bright Minds Skills Academy Book a lecturer / exam
pack:0834259100
HMEMS80 Research Methodology
UNIT 1: WHAT ECONOMICS IS ALL ABOUT
After studying this chapter one should be able to:
❖ define the term “economics”
❖ explain the difference between wants, needs and demand
❖ identify the three main elements of the basic economic problem
❖ define the concept of opportunity cost
❖ explain the economic problem by using a production possibilities curve
❖ explain why economics is a social science
❖ distinguish between microeconomics and macroeconomics
❖ distinguish between positive and normative statements
❖ distinguish between levels and rates of change
2
, Bright Minds Skills Academy Book a lecturer / exam
pack:0834259100
Define the term Economics
❖ Is the study of the use of scarce resources to satisfy unlimited human
wants
❖ It is concerned with the efficient use or management of limited productive
resources to achieve maximum satisfaction of human material wants
❖ Study of how our scarce productive resources are used to satisfy human
wants
Wants Needs Demand
-refer to human desires for -these are necessities -refers to the quantity that
goods and services -wants -essential for survival - consumers are willing and
are unlimited -can be they are not absolutely able to buy at a given price at
individual or group needs unlimited a particular point in time.
E.g. biological,spiritual,law E.g. one can estimate
and order, justice etc the family budget for the
month
Questions economics tries to answer.
❖ For whom?
❖ What to produce? ❖ How to produce?
Opportunity cost
❖ refers to the cost of the alternatives we have to sacrifice
❖ e.g. Tino has to choose between going to school and going to the movies. If
she decides to go to the movies she forgoes the benefits of going to school
so that is the opportunity cost.
❖ We measure opportunity cost of a particular alternative in terms of the best
alternative that has to be sacrificed.
3
ACADEMY
THE EASY WAY REVISED EDITION 2018
, Bright Minds Skills Academy Book a lecturer / exam
pack:0834259100
The following exam packs are available
Code Description
FAC1502 Introduction to Financial
Accounting
FAC1601 Financial Accounting
Reporting
ECS1501 Economics 1A
ECS1601 Economics 1B
QMI1500 Elementary Quantitative
Methods
MNB1501 Management of Business 1
MNB1601 Management of Business 2
AIN1501 Accounting Systems in a
computer environment
CLA1501 Commercial Law
Code Description
ECS2601 Microeconomics
ECS2602 Macroeconomics
MNE2601 Introduction to
Entrepreneurship
MNG2601 General Management
IOP2601 Industrial Research
Psychology
ECS3701 Monetary Economics
ECS3702 International trade
ECS3703 International Finance
MNG3701 Strategic Planning 3A
1
, Bright Minds Skills Academy Book a lecturer / exam
pack:0834259100
HMEMS80 Research Methodology
UNIT 1: WHAT ECONOMICS IS ALL ABOUT
After studying this chapter one should be able to:
❖ define the term “economics”
❖ explain the difference between wants, needs and demand
❖ identify the three main elements of the basic economic problem
❖ define the concept of opportunity cost
❖ explain the economic problem by using a production possibilities curve
❖ explain why economics is a social science
❖ distinguish between microeconomics and macroeconomics
❖ distinguish between positive and normative statements
❖ distinguish between levels and rates of change
2
, Bright Minds Skills Academy Book a lecturer / exam
pack:0834259100
Define the term Economics
❖ Is the study of the use of scarce resources to satisfy unlimited human
wants
❖ It is concerned with the efficient use or management of limited productive
resources to achieve maximum satisfaction of human material wants
❖ Study of how our scarce productive resources are used to satisfy human
wants
Wants Needs Demand
-refer to human desires for -these are necessities -refers to the quantity that
goods and services -wants -essential for survival - consumers are willing and
are unlimited -can be they are not absolutely able to buy at a given price at
individual or group needs unlimited a particular point in time.
E.g. biological,spiritual,law E.g. one can estimate
and order, justice etc the family budget for the
month
Questions economics tries to answer.
❖ For whom?
❖ What to produce? ❖ How to produce?
Opportunity cost
❖ refers to the cost of the alternatives we have to sacrifice
❖ e.g. Tino has to choose between going to school and going to the movies. If
she decides to go to the movies she forgoes the benefits of going to school
so that is the opportunity cost.
❖ We measure opportunity cost of a particular alternative in terms of the best
alternative that has to be sacrificed.
3
