ECS1501 EXAM STUDY
NOTES 2026
ECONOMICS TUTORS
, UNIT 1: GENERAL INTRODUCTION ECONOMICS.
After studying this chapter, one should be able to:
❖ define the term “economics”
❖ explain the difference between wants, needs and demand
❖ identify the three main elements of the basic economic problem
❖ define the concept of opportunity cost
❖ explain the economic problem by using a production possibilities curve
❖ explain why economics is a social science
❖ distinguish between microeconomics and macroeconomics
❖ distinguish between positive and normative statements
❖ distinguish between levels and rates of change
ECONOMICS
❖ Is the study of the use of scarce resources to satisfy unlimited human wants
❖ It is concerned with the efficient use or management of limited productive
resources to achieve maximum satisfaction of human material wants
❖ Study of how our scarce productive resources are used to satisfy human wants
Wants Needs Demand
• refer to human desires for • these are necessities • refers to the quantity that
goods and services • essential for survival consumers are willing and
• wants are unlimited • They are not unlimited able to buy at a given price
• can be individual or group • E.g. one can estimate at a particular point in time.
needs the family budget for
• E.g. Biological, spiritual, the month
law and order, justice etc.
1|Page
NOTES 2026
ECONOMICS TUTORS
, UNIT 1: GENERAL INTRODUCTION ECONOMICS.
After studying this chapter, one should be able to:
❖ define the term “economics”
❖ explain the difference between wants, needs and demand
❖ identify the three main elements of the basic economic problem
❖ define the concept of opportunity cost
❖ explain the economic problem by using a production possibilities curve
❖ explain why economics is a social science
❖ distinguish between microeconomics and macroeconomics
❖ distinguish between positive and normative statements
❖ distinguish between levels and rates of change
ECONOMICS
❖ Is the study of the use of scarce resources to satisfy unlimited human wants
❖ It is concerned with the efficient use or management of limited productive
resources to achieve maximum satisfaction of human material wants
❖ Study of how our scarce productive resources are used to satisfy human wants
Wants Needs Demand
• refer to human desires for • these are necessities • refers to the quantity that
goods and services • essential for survival consumers are willing and
• wants are unlimited • They are not unlimited able to buy at a given price
• can be individual or group • E.g. one can estimate at a particular point in time.
needs the family budget for
• E.g. Biological, spiritual, the month
law and order, justice etc.
1|Page
