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    Lesson 1

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    The document discusses microeconomics and defines it as the proper allocation and efficient use of available resources for the maximum satisfaction of human wants. It explains that microeconomics deals with the economic behavior of individual units like consumers and firms, while macroeconomics examines the whole economy. The document also provides a brief history of economics and outlines different economic systems and the three basic economic problems.

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    Lesson 1

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    full sun
    16 views14 pages
    The document discusses microeconomics and defines it as the proper allocation and efficient use of available resources for the maximum satisfaction of human wants. It explains that microeconomics deals with the economic behavior of individual units like consumers and firms, while macroeconomics examines the whole economy. The document also provides a brief history of economics and outlines different economic systems and the three basic economic problems.

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    LESSON 1

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    The document discusses microeconomics and defines it as the proper allocation and efficient use of available resources for the maximum satisfaction of human wants. It explains that microeconomics deals with the economic behavior of individual units like consumers and firms, while macroeconomics examines the whole economy. The document also provides a brief history of economics and outlines different economic systems and the three basic economic problems.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    16 views14 pages

    Lesson 1

    Uploaded by

    full sun
    The document discusses microeconomics and defines it as the proper allocation and efficient use of available resources for the maximum satisfaction of human wants. It explains that microeconomics deals with the economic behavior of individual units like consumers and firms, while macroeconomics examines the whole economy. The document also provides a brief history of economics and outlines different economic systems and the three basic economic problems.

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    of 14

    BC 204:

    MICROECONOMICS

    DR. JOFREY R. CAMPOS


    What is the importance of studying
    Economics?
    • Human activities involve economics: earning money, buying
    goods and services, putting up a business, or saving money in
    a bank.
    • Our physical existence depends on it.
    • Economics conditions and policies of other countries an affect
    the direction and nature of our economic development.
    • It guides us how to make a living, how to use wisely our money,
    how to run our business, how to distribute properly our available
    scarce resources, and how to maximize our profits.
    Economics Defined

    Economics is the proper allocation and


    efficient use of available resources for the
    maximum satisfaction of human wants.
    Methods of Economics

    • Empirical method
    • Economic principles are generalizations
    • Economic policy of applied economics
    Efficient Use of Resources

    Economics deals with the efficient use of


    available limited resources. This means we have
    to use wisely our money.
    Division of Economics

    1. Microeconomics – deal with the economic


    behavior of individual units such as the consumers,
    firms and the owners of the factors of production.
    2. Macroeconomics – deals with the economic
    behavior of the whole economy of its aggregate
    such as government, business and household.
    History of Economics
    • The Greek philosopher Plato recommended division of labor in
    order to improve production.
    • Another Greek philosopher, Aristotle, explained the functions of
    money.
    • Economics was derived from an ancient Greek word oikonomous
    which means household management.
    • The Babylonians had clear ideas about interests and mortgages.
    • Phoenicians had good knowledge about commerce and money.
    • Hebrews and the Hindus stressed the virtues of industry,
    temperance, and economy.
    • It has started to be known when Adam Smith’s
    book Wealth of the Nations was published in
    1776.
    - This book became the bible of economics for more
    than a century.
    - Because of the economic contributions of Smith in
    the field of science, he has been considered the
    “Father of Economics”
    The Three Basic Economic Problems

    1. What goods and services to produce and how


    much?
    2. How to produce the goods and services?
    - Schumacher, author of Small is Beautiful, suggested
    intermediate technology for the less developed countries.
    3. For whom are the goods and services?
    Economic System Models
    Capitalism Communism
    - Private property - No private property
    - Economics freedom - No free competition
    - Free competition - No economic freedom
    - Profit motive - No profit motive
    - Presence of central planning
    How to Judge and Economic System
    1. Abundance
    2. Growth
    3. Stability
    4. Security
    5. Efficiency
    6. Justice and equity
    7. Economic freedom
    Thank you so much!
    Activity 1
    Define the following:
    1. Empirical method
    2. Ceteris paribus
    3. Economic principles
    4. Economic policy
    5. Third world
    6. Oikonomous
    7. Capitalism
    8. Communism
    9. Socialism
    10.Gosplan
    Activity 2

    1. Why is economics very important?


    2. Explain the three basic economic problem.
    3. Which is the best economic system model? Why?

    -------------------------------
    MS Word, 8 ½ x 11, Arial, size 11, single space

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