Essay on Economics
LESSON 1: BASIC ECONOMIC CONCEPTS
By the end of this lesson, you should be able to
give an overview of Economics deal with the Economic Problem discuss the Methodology in Economics differentiate between Microeconomic Issues and
1.1 WHAT IS ECONOMICS?
“Supply and Demand - that’s all there is to economics. The rest is nonsense.”
“Economics is about what everyone knows in a language that nobody understands.”
“Economics explains the price of everything and the value of nothing.”
“Economists are quite unique in their failure to solve a single one of the problems of their profession.” John Papworth
Economist– the one profession where you can gain great eminence without ever …show more content…
An insufficiency of means in relation to wants
The ‘methods’ definition focuses on how economists deal with problems rather than the problems themselves. (i.e. the Scientific method)
They see Economics as supplying a ‘tool kit’ to explain the economic dimensions of human behaviour. Combining both views of Economics we can define Economics as the study of how individuals and societies deal with scarcity and the development of methods for analysing such problems.
Introduction to Economics
BASIC ECONOMIC CONCEPTS
1.2 PRODUCTION AND CONSUMPTION - the satisfaction of wants
Economics begins with a study of human ‘wants’. By ‘wants’ the economist means material wants — everyone air, food and water to support life (basic wants); we also want more advanced things such as comfortable homes, education, entertainment, transport etc.
Our wants can be satisfied by the enjoyment (consumption) of goods and services. Goods are tangible items such as food, clothing, housing, furniture, motor cars, television sets, books, etc. -these are called consumer goods. (There is another class of goods called
Producer goods which do not yield personal satisfaction to consumers but are used to