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What Economics is all about, LU1

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These notes are from a student with a 95% average for the economics module offered by IIE universities. This document contains hand written notes on Learning Unit 1, What Economics is all about. The source material is relevant for the following programs BBR1,BDK1,BIB2,BIL1,BMA1,BCIL1 and BBR1w

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  • November 7, 2024
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  • 2024/2025
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  • Cynthia
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WHAT ECONOMICS IS ABOUT

Learning Thit1
(LOI) • economics = Study of how scare resources are allocated to satisfy human needs


"°" why is Economics a social science 8. it is a social science b/c it studies human behaviours

• It is a science as it is used for explanation, predication and
Policy related decisions
(103)
• MICRO-ECONOMICS-or focuses on individual parts of the economy
• MACRO-ECONOMICS-focuses on the economy as a whole


404, • Positive Economics = objective and factual statements, what is
• Normative Economics = a branch of economics that expresses opinions,
i




or value judgements. what ought to be




105)
• SCARCITY = the resources avaliable are insufficient to satisfy peoples 'wants.

→ therefore there are unlimited wants and limited Resources

scarcity results in choices being made


• CHOICES = the act at making a decision between two or more possibilities


everytime a choice is made. opportunity
• costs happen


• OPPERTUNITY COSTS = sacrificing something in order to gain mother



WANTS = human desires
NEEDS = human essentials
DEMANDS = wants that are supported by a need and the ability to buy

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