What is economics?
Презентація по слайдам:
Plan: 1. Vocabulary 2. Economics 3. Modern economics 4. Factors of production 5. Scarcity 6. The main problem in economics 7. Microeconomics and macroeconomics
Vocabulary Economics Wants and needs Scarcity Factors of production Economic problem Land, labour, capital, entrepreneurship Goods, services Limited resources Production, distribution, consumption
Economics The term economics comes from the Ancient Greek oikonomia , the word composed of oikos( “house”) and nomos(“law”).
Modern economics Modern economics began in 1776, with the publication of Adam Smith’s “Wealth of Nations” . Modern definition of economics interprets it as a social science, which analyses the production, distribution, and consumption of goods and services.
Factors of production Economics often uses such categories as factors of production. Land, labour, capital and entrepreneurship are main productive resources.
Scarcity Scarcity is the fundamental economic problem of having unlimited human needs and wants in the world of limited resources. Economics is sometimes called the study of scarcity.
The main problem in economics The main problem in economics is the question of allocating scare resources between competing uses. In this connection arise three questions : What to produce? For whom to produce? How to produce?
Microeconomics and macroeconomics Microeconomics studies the action of individuals and firms, and how they interact. Macroeconomics studies inflation, unemployment and GDP.