Lecture on Introduction to Microeconomics
Introduction
- Lecture on economics and business studies started later due to Eid holiday.
- Today's lecture is an introduction to economics, focusing on the basics and significance of studying it.
- Emphasis on understanding and excelling in economics.
What is an Economy?
- An economy refers to the system within a country where people, resources, and businesses interact.
- Examples include Indian, Chinese, Australian economies.
- It encompasses all activities related to transactions, production, demand, and supply.
- An economy includes resources, businesses, and professionals working in various sectors.
The Main Activities in an Economy
- Production: Essential for providing goods and services.
- Consumption: Purchasers or consumers are necessary for economic balance.
- Investment: Necessary funding for infrastructure and business growth.
Purpose of Studying Economics
- Reason: Scarcity of resources vs. unlimited human wants.
- Economics helps us understand resource allocation to meet various needs optimally.
Scarcity
- Refers to limited supply relative to demand.
- Human wants exceed available resources, necessitating optimal use.
Economic Problems
- Problem of Choice: Allocating limited resources to maximize satisfaction.
- Reasons for Economic Problems: Scarcity, unlimited human wants, alternative uses of resources.
Definition of Economics
- A social science studying how society uses limited resources to meet unlimited wants and produce goods and services.
- Economics involves analyzing resource allocation and utilization.
Branches of Economics
- Microeconomics: Study of economics at a small, individual level (e.g., a single household or business).
- Macroeconomics: Study of economics on a large scale (e.g., national economy).
Upcoming Topics
- In-depth differentiation between micro and macroeconomics in the next class.
- Aiming for a comprehensive understanding with examples.
- Encourage note-taking and thorough review for full marks.
Conclusion
- The importance of understanding basics before moving to detailed concepts.
- Encouragement to keep notes and prepare for future classes.
Thank you for joining. See you in the next lecture.