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Economics Introduction

The document provides an overview of microeconomics, contrasting it with macroeconomics, and discusses key economic concepts such as positive vs normative economics and the production possibility curve. It emphasizes the importance of making choices between unlimited wants and limited resources, and outlines the definitions of economics from various economists. Additionally, it highlights the central problems of an economy, including allocation, utilization, and distribution of resources.

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gauravkasanya409
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15 views11 pages

Economics Introduction

The document provides an overview of microeconomics, contrasting it with macroeconomics, and discusses key economic concepts such as positive vs normative economics and the production possibility curve. It emphasizes the importance of making choices between unlimited wants and limited resources, and outlines the definitions of economics from various economists. Additionally, it highlights the central problems of an economy, including allocation, utilization, and distribution of resources.

Uploaded by

gauravkasanya409
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MICRO ECONOMICS

• Preliminaries

• Economics-Micro Vs. Macro

• Positive VS Normative Economics

• PPC and opportunity cost

•
Economics is all about making choice between unlimited
wants and limited resource which have alternative uses.
Thus it is the study of how scarce resources are allocated
among unlimited wants.
• Managerial/Business Economics deals with the
application of economic concept, theories and
methodologies to the practical problems of business in
order to formulate rational managerial decisions for
solving those problems
Slide Title

 ADAM SMITH:- Economics is the enquiry into the nature and causes of wealth of
nations.

 ALFRED MARSHAL:-Economics is the study of man’s actions in the ordinary


business of life, it enquires as to how he gets his income and how he utilizes it.

 LIONEL ROBBINS:- Economics studies human behavior as a relationship between


unlimited ends and scarce means, which have alternative uses.

 SAMUELSON:- Added in it along with it there should be growth of resources as well.


Micro Vs. Macro
Economics
• Microeconomics
 Studies the economy at the level of individual
consumers, workers, firms, goods, and markets

• Macroeconomics
 Studies the economy at the aggregate level, at the
level of the economy as a whole.
 Examines total consumer behavior, total
employment, total production, total sales, etc.
Positive Vs Normative
Economics
• Positive Economics
 Focuses on “what is”.
 Analyzes actual, measurable outcomes.
 Does not impose value judgments,
person feelings or convictions.
 Positive economics is economics as a
science.
• Normative Economics
 Focuses on what someone thinks “ought
to be” or “should be”.
 Makes ethical judgments—value
judgments.
Central Problem of an Economy
• Fundamental Problems

Fuller Growth of
Allocation of Utilization of Resources
resources resources

Problem Problem Problem of


of the of choice Distribution
Product
Production Possibility
Curve & Opportunity Cost
• Production Possibility curve:- It is a curve showing
all possible combinations to two goods to produce which
shows fuller utilization of resource.

• Opportunity cost:- It is the loss of next best


alternative which is sacrificed.
Case Study-1
• https://www.youtube.com/watch?v=_ElpAtDL-WE

• https://www.youtube.com/watch?v=m3z-XznLHLI

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