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Introduction To Business Economics - I: Instructor: Prof - Dr.Qaisar Abbas Course Code: ECO 400
Introduction To Business Economics - I: Instructor: Prof - Dr.Qaisar Abbas Course Code: ECO 400
Introduction to Business
economics - I
Instructor: Prof.Dr.Qaisar Abbas
Course code: ECO 400
Introduction
Course instructor: Prof. Dr.Qaisar Abbas
Course Objective
• Understanding of micro and macroeconomics concepts
Assessment Method
• 4 Quizzes 10%
• 4 Assignment 15%
Definitions of economics
The definition of economics evolved through three stages.
Criticism
• It could make society materialistic
Introduction
2. Definition of the Neo Classical school of thought led by
Alfred Marshall
Dr. Alfred Marshall’s in 1798 defined economics as
Criticism
• It limits the scope of economics as it leaves out non material
requisites of well being.
Demerits
i. He tried to make economics as pure science whereas its is a social
science.
iii. He says resources are limited and does not explain the increase in
limited resources.
Introduction
A household and an economy face many decisions:
• Who will work?
• What goods and how many of them should be produced?
• What resources should be used in production?
• At what price should the goods be sold?
Types of economics
Microeconomics focuses on the individual parts of the economy.
How households and firms make decisions and how they interact in
specific markets
Macroeconomics looks at the economy as a whole.
Economy-wide phenomena, including inflation, unemployment, and
economic growth
Ten principles of economics
How people make decisions.
• People face tradeoffs.
• The cost of something is what you give up to get it.
• Rational people think at the margin.
• People respond to incentives.
Efficiency v. Equity
• Efficiency means society gets the most that it can from its
scarce resources.