Lesson 1 Nature of Economics
Lesson 1 Nature of Economics
Economics
Definition of Economics
Resources
Human Wants versus Human Needs
Scarcity
Economics as a science, an art and as a social
science
Micro and macro economics
Importance of Studying Economics
SESSION OBJECTIVES
Science of scarcity
Science of efficiency
1. NATURAL
Forms of wealth derived from nature,
including land, forests, mountains,
rivers, and seas.
2. Human
Human labor is the most basic
form of wealth. Brain power is also
part of the human wealth of an
economy
3. Physical
Natural, human, and man-made
wealth that can provide satisfaction
through the production of goods and
services.
Choices, Choices
MICROECONOMICS MACROECONOMICS
I A
TREES VS. THE FOREST
2. Macroeconomics = Forest
Studies how the economy
behaves as a whole
GNP/GDP, Inflation, and
employment and
unemployment, balance of
payments and exchange rates
The Scope of Economics
Microeconomics
is the study of choices made by
individuals and businesses, the way
these choices interact, and the influence
that governments exert on them.
Macroeconomics
is the study of the effects on the national
and global economy of the choices that
individuals, businesses, and governments
make. 1-43
The Scope of Economics