ECONOMICS

ECONOMICS
What is Economics?

It’sthe study of scarcity, the study of how

people use resources and respond to
incentives, or the study of decision-making

It often involves topics like wealth and

finance, but it’s not all about money
TWO MAJOR TYPES OF
ECONOMICS
MICROECONOMICS

concerned with how supply and

demand interact in individual
markets for goods and services

concerned with single factors and

the effects of individual decisions
 ADAM SMITH

o Father of Economics

o Published “An Inquiry into the

Nature and Causes of the Wealth
of Nation” (Bible of Economics)

o Believed that more wealth to

common people would benefit
nation’s economy and society as
a whole
 MACROECONOMICS

 Concerned with how the overall economy

works. It studies such things as employment,
gross domestic product, and inflation—the
stuff of news stories and government policy
debates.

 Examine overall economies on a regional,

national, or international scale.
JOHN MAYNARD KEYNES

 Father of Macroeconomics
 Published “The General Theory of
Employment, Interest and Money” in
1936
 Keynes offered an explanation for the
fallout from the Great Depression, when
goods remained unsold and workers
unemployed.
 What do economists do?

 Using theoretical models or empirical data,

they evaluate program, study human behavior,
and explain social phenomena. And, their
contributions inform everything from public policy to
household decisions.
 Economics intersects many disciplines. Its
applications the environment, education and
immigration.
Why should I care about economics?

Economics affects everyone’s lives.

Learning about economic concepts can
help you to understand the news, make
financial decisions, shape public policy,
and see the world in a new way.
THANK YOU FOR
LISTENING
GROUP 2:
DIGAMON, JAY O.
MADRIA, JESSA MAE S.
MORALES, RHOSETTE P.