Economics Lecture 1
Introduction
- Brief introduction and overview of the course
- Emphasis on study tips and guidance throughout the course
- Importance of diving into the subject from the first day
Syllabus Overview
- First unit: Introduction to Economics
- One of the easiest units
- Accounts for 28 marks out of a 200 mark paper
- 4-5 MCQs (8 marks) and 1 essay question (20 marks)
Study Materials and Tools
- No need for separate textbooks; provided course materials are sufficient
- Recommended to have:
- Sticky notes
- Colored pens (3 colors max)
- Highlighters (1-2)
- Basic stationery (pen, pencil, ruler, eraser)
- Buy a past paper book, preferably with the 2023 paper included
Study Tips
- After learning a subject area, always do a past paper question to test understanding.
- Concentrate during lectures to minimize the need for future revision.
- Understand the material instead of memorizing it to retain information longer.
- Use QR codes in the provided materials to access supplementary YouTube videos and online resources.
Key Concepts in Economics
Economic Behavior and Needs
- Economic Behavior: Activities people do to fulfill their physical needs and wants (consumption, production, distribution of goods and services).
- Types of Needs:
- Physical needs: Fulfilled by consuming goods or services (e.g., food, shelter, clothing).
- Mental needs: Not fulfilled by consuming goods (e.g., love, kindness, respect).
- Economics focuses on physical needs and wants, not mental needs.
Definition of Economics
- Economics: The study of how scarce (limited) resources are used to satisfy unlimited wants.
- Key Concepts:
- Scarce resources: Limited availability
- Alternative uses: Different ways resources can be used
- Unlimited wants: Numerous and varied
- Making proper choices: Utilizing limited resources efficiently to fulfill as many wants as possible
- Economics as a Social Science: Studies human behavior in using scarce resources
Branches of Economics
- Microeconomics: Studies small parts of the economy such as individuals, households, and firms.
- Examples: Individual demand, household spending, cost of production for a firm
- Macroeconomics: Studies the overall economy or large sectors of it.
- Examples: National inflation rate, unemployment rate, GDP, exchange rates
Practical Application: Past Paper Practice
- Importance of practicing with past papers to assess understanding
- Example Questions:
- Importance of microeconomics (studying individual/household decisions)
- Defining economics (focus on scarce resources and choice)
- Identifying microeconomic statements (e.g., price of a specific good)
- Understanding concepts such as inflation and exchange rates
Example MCQs:
- Branch of Economics that studies decisions of individual households and firms: Microeconomics
- Economics studies the relationship between scarce resources and __: choice
- Identify a microeconomic statement: The price of rubber declined by 10% last year.
- Microeconomic branch focusing on decisions of individuals and firms: Microeconomics
- Correct definition of economics: The study of how scarce resources are allocated to satisfy unlimited wants.__
Conclusion
- Emphasis on the ease of understanding economics with proper focus and practice
- Encouragement to use study tips and continue practicing to excel in the course
- Open invitation for further questions and clarifications via WhatsApp or in the next class meeting.
Next class: Thursday, 7-9 PM