IBECO - Concepts

What is NOT economics?

• A natural science

• A social science

• A science focusing on the study of society and how they interact with each other

• A science that studies human behaviour as a relationship between ends and scarce resources

What is the basic economic problem?

• We have finite wants and only limited time to satisfy them

• Resources are relatively scare and wants are infinite, which lads to choices to be made

• We have scarce knowledge yet want to achieve Level 7

What are goods?

• Physical objects that are capable of being touched (tangible) e.g. mobile phones, vegetables, cars

• Intangible things that can be touched, e.g. mobile-phone repairs, car insurance, haircuts

• Things that we must have to survive, such as food, shelter, clothing

• Things that we would like to have but which are not necessary for our immediate physical survival, such as television and mobile phones

What are services?

• Physical objects that are capable of being touched (tangible) e.g. mobile phones, vegetables, cars

• Intangible things that can be touched, e.g. mobile-phone repairs, car insurance, haircuts

• Things that we must have to survive, such as food, shelter, clothing

• Things that we would like to have but which are not necessary for our immediate physical survival, such as television and mobile phones

What are wants?

• Physical objects that are capable of being touched (tangible) e.g. mobile phones, vegetables, cars

• Intangible things that can be touched, e.g. mobile-phone repairs, car insurance, haircuts

• Things that we must have to survive, such as food, shelter, clothing

• Things that we would like to have but which are not necessary for our immediate physical survival, such as television and mobile phones

What are needs?

• Physical objects that are capable of being touched (tangible) e.g. mobile phones, vegetables, cars

• Intangible things that can be touched, e.g. mobile-phone repairs, car insurance, haircuts

• Things that we must have to survive, such as food, shelter, clothing

• Things that we would like to have but which are not necessary for our immediate physical survival, such as television and mobile phones

What is the definition of Economics?

• the scientific study of the human mind and its functions, especially those affecting behaviour in a given context.

• the study of the development, structure, and functioning of human society.

• The study of the choices that people make in overcoming the problems that arise because resources are limited while needs and wants are unlimited

• The study of human societies and cultures and their development.

Is there any such thing as a free lunch?

• Yes - always take free food

• No - the resources in the lunch could have been used for something else

What are the two main areas of economics?

• Micro

• Meso

• Macro

• Exo

• Paleo

What is microeconomics?

• Focuses on consumers and producers and the choices they make in response to change

• Investigates factors affecting the economy as a whole

• Focuses on individual markets

• Focuses on broader objectives of inflation, unemployment, growth and distribution of income

• Considers individual industries to see how producers interact and compete