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What is it?

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The word economics or economy consists of two Greek words household and law. So, economics is the science of household management

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Various idea about economics money business inflation work Governments decision Business manager decision Every days decision

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For the first time Aristotle spoke about this science. Greek Xenophon wrote the book “Economics”, where he argued economics rules. “Domostroi” was the same book in Russia. The first man, who receive the Nobel Memorial Prize in Economic Science, was Jan Tinbergen.

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MATERIAL: Housing Heating Tools NON-MATERIAL: Time Space Convenience

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Resources are limited, but our demand for them certainly is not. Our every day life is full of different decisions. Every decision we make is a trade-off. Resources Demand Decision Trade-off

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Areas of economics Microeconomics-science about business and people Macroeconomics-science about all economics Study: -Economics of a country - Economics of the whole world Study: - Families household budgets - Small or large companies Microeconomics and Macroeconomics are closely related.

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CLASSICAL Value of the goods Cost of the production NEOCLASSICAL Economy work Supply Demand

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Adam Smith He was born on the 5 of June in 1723. But it isn’t an exact date. His father, also named Adam Smith, was married Margaret Douglas in 1720 and died six months after Smith’s birth. Smith was really close to his mother. During all life Smith developed his passion for liberty, reason, and free speech. He studied at the University of Glasgow, Oxford. Smith considered the teaching at Glasgow beter that at Oxford, which he found intellectually stifling. The famous Smith’s book is The Wealth of Nations. He died on the 17 of July in 1790, in Edinburgh, Scotland.

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Positive economists Try to explain the behaviour of the economy to guess economic changes before they happen Say - “This is how it is…” Normative economists Try to improve the economy Say -“We should…”   Nowadays economists try to answer to this question.

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Economists Formulate theories Create economic model Collect data From this information, economists make theories which explain why the economy works the way it dose Show relationships between these different data Include facts and figuries about almost anything, from birth rates to coffe production

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