Section outline

  • Introduction to Economics cont...


    What is Economics?

    Economics Definition: Economics is essentially a study of the usage of resources under specific constraints, all bound with an audacious hope that the subject under scrutiny is a rational entity which seeks to improve its overall well-being. Simply put, Economics is the study of people and choices.

    Two branches within the subject have evolved thus: microeconomics (individual choices) which deals with entities and the interaction between those entities, while macroeconomics (aggregate outcomes) deals with the entire economy as a whole.

    A typical college student appreciates the lessons of economics in day-to-day life. Semester books (choices) are to be purchased with a limited amount of pocket money (constraints).

    The aim of studying economics is to understand the decision process behind allocating the currently available resources, the needs always unlimited but resources being limited.

    Adam Smith wrote ‘An inquiry into the Nature and Causes of the Wealth of Nations‘ which as the name suggests, was an attempt at understanding the reasons behind the economic growth (or lack thereof) of a nation.

    An interesting backdrop to consider here — the fundamental assumption that we need to make for the whole economic system (as we know it today) to work is that human beings are motivated by pure self-interest and will take decisions that they think will make them ‘better off’ now or sometime in the future.

    The economic and political systems of a country are closely inter-linked and jointly determine the well-being of its citizens.

    Success Criteria: I can/have...

    • Explain and apply key concepts to analyse the Economic world

    Activities:

    1. Google classroom
    2. Education Perfect