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Date Submitted: 09/11/2016 03:51 AM
Economics
* The nature and importance of economics
* The economic models and the flow of production
Economics
- Greek word “oikosnamos” from “oikos - house” and “namos – custom or law” which means “rules of the house (hold for good management)”
- it’s the study of scarcity,
- the study of how people use resources,
- the study of decision-making
Needs
- essential for human survival
Kinds of Needs
* Basic needs
* Essential needs for descent and comfortable living
* Needs for luxury goods
Wants
- goods that give more satisfaction
Kinds of wants
* Private wants - Private is personal clientele and their personal needs such as jets, hotels, and restaurants
* Public wants - Public wants are governments costs, marketing, and such.
Consumers
* Final users of produced goods and service satisfaction of their wants and need
Producer
* Use various resources in order to produce final goods and services.
Goal of economics
1. To strengthen economic freedom
2. To promote economic efficiency
3. To promote economic stability
4. To promote economic security
5. To attain a high level of growth in the economy
Economics as Related to Other Social Sciences
1. Anthropology
2. Political Science
3. Sociology
4. Psychology
5. History
Branches of Economics
Microeconomics
- Deals with the behavior of individual components such as household
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.
Methodologies of Economics
Positive economics
-It deals with how the economy works
Normative economics
- It is an economic statement that makes recommendation to economic policy.
Scientific Method of Economics
The scientific method involves identifying a problem, gathering data, forming a hypothesis, testing the hypothesis, and analyzing the results. In...