MICROECONOMICS

MODULE 1
INTRODUCTION TO ECONOMICS
 Is the study of how individual and societies
choose to use the scarce resources that nature
and previous generations have provide
WHAT IS ECONOMICS

Is the study of how people, firms, and societies

use their scare production resources to best
satisfy their unlimited material wants.
From Microeconomics by Eric R. Dodge (McGraw-Hill)
WHY STUDY ECONOMICS?

1. To learn a way of thinking

2. To understand society

3. To understand global affairs

4. To be an informed citizen
ECONOMIC HAS THREE FUNDAMENTAL CONCEPT

1. Opportunity cost

2. Marginalism

3. working of efficient market

Opportunity Cost - The best alternative that we forgo, or give up when we
make a choice or a decision.

Marginalism - The process of analyzing the additional or incremental

costs or benefits arising from a choice or decisions.

Efficient Market - A market in which profit opportunity are eliminated

almost instantaneously.
METHOD OF ECONOMICS

1. Positive Economics

2. Normative Economics
WHAT IS MICROECONOMIC

is the study of decision made by people and business

regarding the allocation of resources, and prices at which
they trade good and services.

focuses on supply and demand and other forces that

determine price levels in the economy.
WHAT IS MACROECONOMICS

it analyzes entire industries and economic, rather than individual

or specific companies, which is a top-down approach.
END OF PRESENTATION