Scribd
Upload
43 views

Micro Economics/Basic Economics

This document provides an introduction to microeconomics and basic economics. It defines economics as the study of allocating scarce resources to satisfy unlimited human needs and wants. It distinguishes between needs, which are essential for survival, and wants, which make life more pleasant. The goals of economics are outlined as strengthening economic freedom and efficiency, as well as promoting stability, security, and economic growth. Economics is also positioned in relation to other social sciences such as anthropology, political science, sociology, psychology, and history. The branches of economics - microeconomics and macroeconomics - are defined. Finally, the history of economic thought is surveyed, including classical economics, general equilibrium theory, quantity theory of money, neoclass

Uploaded by

Jashi Sioson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
43 views

Micro Economics/Basic Economics

This document provides an introduction to microeconomics and basic economics. It defines economics as the study of allocating scarce resources to satisfy unlimited human needs and wants. It distinguishes between needs, which are essential for survival, and wants, which make life more pleasant. The goals of economics are outlined as strengthening economic freedom and efficiency, as well as promoting stability, security, and economic growth. Economics is also positioned in relation to other social sciences such as anthropology, political science, sociology, psychology, and history. The branches of economics - microeconomics and macroeconomics - are defined. Finally, the history of economic thought is surveyed, including classical economics, general equilibrium theory, quantity theory of money, neoclass

Uploaded by

Jashi Sioson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 9

Micro

Economics/Basic
Economics
Chapter 1
Introduction
• Economics – it is the study of
proper allocation and efficient use
of scarce resources to produce
commodities for the maximum
satisfaction of unlimited human
What is needs and wants.
• Needs – are essential for human
Economics? survival like food, clothing and
shelter.
• Wants – are goods that give more
satisfaction and make life more
pleasant and worth living.
• To strengthen economic freedom. It includes
consumer choice, freedom of occupational choice,
freedom to consume or save, freedom to own
properties, and freedom of enterprise.
• To promote economic efficiency. Efficiency is
producing more output with the use of fewer
resources.
Goals of • To promote economic stability. Stability means
there are no violent ups and downs in the economy.
Economics: • To promote economic security.
• To attain a high level of growth in the economy.
Economic growth means that the capacity to
produce goods and services are increasing and it is
growing more rapidly than the population.
Economics as Related to other Social Sciences

ANTHROPOLOGY – IT IS A POLITICAL SCIENCE – IT IS THE SOCIOLOGY – IT IS THE STUDY PSYCHOLOGY – IT IS DEFINED HISTORY – IT IS A SOCIAL
BRANCH OF SCIENCE THAT SYSTEMATIC STUDY OF THE OF SOCIETY OR STUDY OF AS THE SCIENTIFIC STUDY OF SCIENCE THAT FOCUSES ON
STUDIES THE BIOLOGICAL, STATE AND GOVERNMENT. GROUPS OR PARTNERS. IT THE BEHAVIOR AND LIVING THE STUDY OF PAST EVENTS.
PSYCHOLOGICAL, SOCIAL AND STUDIES THE SOCIETY BY ORGANISMS WITH SPECIAL
CULTURAL ASPECTS OF MEANS OF ANALYZING HUMAN ATTENTION TO HUMAN
HUMAN LIFE. GROUPS, INSTITUTIONS, AND BEHAVIOR.
ITS SOCIAL RELATIONSHIPS.
Microeconomics – deals with the
behavior of individual components
such as household, firm, and
individual owner of production.

Branches of Economics
Macroeconomics – deals with the
behavior of economy as a whole
with the view of understanding the
interaction between economic
aggregates such as employment,
inflation, and national income.
History of the development of economic thought:

Quantity theory of money – was


General equilibrium theory, developed by David Hume, a Scottish
advanced in 1874 by Leon Walras, philosopher and economist who was
Classical economics – it can be
explained how much of each good is a contemporary of Adam Smith. This
divided into two branches:
created and how the price of each theory is about money prices as
good is related to every other good. opposed to real quantities and
relative prices.
History of the development of economic thought

Neoclassical Economics.
Neoclassical economists presumed
an element of irrationality in the
Keynesian Economics. John
context of inter-temporal decision
Maynard Keynes is considered as
making. William Stanley Jevons,
the father of macroeconomics. But
Irving Fisher, Alfred Marshall, and
before establishing his own school
Arthur Cecil Pigou observed a
of thought, he was a believer of the
preference for present over future
classical economics.
consumption, and each took this as
evidence that consumer foresight
or will power was defective.
• Monetarism. The most important tenet of
History of monetarism is that money matters – and it
matters a lot. It is the crucial determinant of
the how the overall economy performs.
Monetarism talks about the supply of money,
developmen that is, the total quantity of money in the
system and how fast it is rising or falling.
t of • Rational expectations (New Classical
economic Economics). Rational expectations theory states
that people understand how the economy
thought works and use all information available to them
in making their economic decisions.
END OF PRESENTATION
GOD BLESS US ALL!!

You might also like