MICROECONOMICS

DEFINITION OF ECONOMICS

• Economics is a science which studies human behaviors as a relationship between ends and scarce which have alternative uses.

• Economics is a study of how people use their limited resources to try to fulfil unlimited wants and involves alternatives or choices

• The study of a nation’s economy.

• Who are able and willing to have a job can get one

DEFINITION OF MICROECONOMICS

• The study of individual parts of the economy, such as public choices, business choices and personal choices

• Price stability means there are minimum changes in general price levels

• There is an increase in the real per capita income from year to year

• They need to pay for the imports in the currency of the country from which the goods are bought.

MICROECONOMICS VS. MACROECONOMICS

• The study of individual parts and the study of the economic system as a whole

• Microeconomics: such as public choices, business choices and personal choices

  Macroeconomics: such as national income, trade cycle, unemployment rate, inflation and general price level.

• To achieve full employment, the government needs to create a lot of job opportunities and stimulate aggregate demand

• When aggregate demand increases, industries will produce more output

ECONOMIC RESOURCES THE 4 FACTOR PRODUCTION

• LAND

• LABOR

• CAPITAL

• ENTREPRENEURSHIP

• ELECTRICITY

BASIC ECONOMIC CONCEPTS

• SCARCITY

• EDUCATION

• CHOICE

• OPPORTUNITY COST

Scarcity is defined as...

• wants always to exceed unlimited resources to satisfy them.

• wants always to exceed limited resources to satisfy them.

• To achieve full employment

• They need to pay for the imports in the currency of the country from which the goods are bought.

OPPORTUNITY COST

• the second-best alternative that has to be forgone for another choice which gives more satisfaction.

• the first-best alternative that has to be forgone for another choice which gives more satisfaction.

• the third-best alternative that has to be forgone for another choice which gives more satisfaction.

• the fourth-best alternative that has to be forgone for another choice which gives more satisfaction.

BASIC ECONOMIC PROBLEMS

• WHAT TO PRODUCE?

• HOW TO PRODUCE?

• FOR WHOM TO PRODUCE?

• WHAT IS YOUR NAME?

WORLD ECONOMY SYSTEM

• CAPITALISM ECONOMY SYSTEM

• SOCIALISM ECONOMY SYSTEM

• ISLAMIC ECONOMY SYSTEM

• MIXED ECONOMY SYSTEM

• GOVERNMENT ECONOMY SYSTEM

"The type of goods and services to be produced". What does this statement refer to?

• WHAT TO PRODUCE?

• HOW TO PRODUCE?

• FOR WHOM TO PRODUCE?

• WHAT TO DISCUSS?