PETRO ECONOMICS

ECONOMICS
 ECONOMICS IS ABOUT MONEY

 HOW MUCH MONEY PEOPLE ARE PAID

 HOW MUCH THEY SPEND

 WHAT IT COSTS TO BUY VARIOUS ITEMS

 HOW MUCH MONEY FIRM EARN

 HOW MUCH MONEY THERE IS IN THE ECONOMY

DESPITE THE LARGE NUMBER OF AREAS IN WHICH
OUR LIVES ARE CONCERNED WITH MONEY ,
ECONOMICS IS MORE THAN JUST THE STUDY OF
MONEY

 PRODUCTION

 CONSUMPTION

 COULD PRODUCT OR CONSUMPTION TAKES

PLACE WITHOUT MONEY
THE PROBLEM OF SCARCITY
 Scarcity

 Factors of Production(or resources)

 Labour

 Land ( and raw materials)

 Capital
ECONOMICS - BRANCHES
 Macroeconomics

 Aggregate Demand

 Aggregate Supply

 Microeconomics
MACROECONOMICS
 Inflation

 Current Account balance of payments deficits

 Recession

 Unemployment

 Demand –side policy

 Supply Side policy

MICROECONOMICS & CHOICE
What

How

For Whom
DEFINITIONS
 Opportunity Cost

 Rational Choices

 Marginal Costs

 Marginal Benefits

 Investment

 Barter Economy

 Market
DIFFERENT ECONOMIC
SYSTEMS
 Centrally planned or command economy

 Free market economy

 Mixed economy
 ECONOMICS AS SCIENCE
 Model in economics

 Building Models

 Using Models
1. Explanation
2. Prediction/Deduction

 Assessing Models
ECONOMICS AS A SOCIAL SCIENCE
 Human Behavior
ECONOMICS AND POLICY
 Positive Statement

 Normative Statement
ECONOMIC ANALYSIS
 Time Series Data

 Cross – Section data

 Graphical presentations of data

DEFINITIONS
 Mean
 Median
 Nominal Value
 Real Values
 Index number
 Base year
 Retail Price Index
 Weighted Average
 Differentiations
 Marginal Cost
 Second derivative test
 Second Derivative
THANK YOU