ECONOMICS
ECS1501 & ECS1601 — Complete
Study Notes
UNIVERSITY OF SOUTH AFRICA (UNISA)
Microeconomics · Macroeconomics · SA Economy
Full Definitions | Graphs Explained | Formulas | Exam Tips
Semester 1 & 2 | All Units Covered | 2024/2025
, TABLE OF CONTENTS
PART A ECS1501 — MICROECONOMICS
Unit 1 Introduction to Economics 3
Unit 2 Demand, Supply & Market Equilibrium 5
Unit 3 Elasticity 9
Unit 4 Consumer Theory & Utility 11
Unit 5 Production & Cost Theory 13
Unit 6 Market Structures 16
PART B ECS1601 — MACROECONOMICS
Unit 7 National Income & GDP 20
Unit 8 Money, Banking & Inflation 23
Unit 9 Fiscal & Monetary Policy 26
Unit 10 International Trade & Exchange Rates 29
APPENDIX Formulas & Quick Reference 32
, UNIT 1 Introduction to Economics
Scarcity · Choice · Opportunity Cost
1.1 What is Economics?
Economics is the social science that studies how individuals, firms, and governments make decisions
about allocating SCARCE resources to satisfy UNLIMITED wants. The fundamental economic
problem is SCARCITY.
Economics The study of how scarce resources are allocated among competing
uses to satisfy unlimited wants.
Scarcity Resources are LIMITED but human wants are UNLIMITED — the
central problem of economics.
Resources Inputs used to produce goods and services: land, labour, capital,
entrepreneurship.
Opportunity Cost The value of the NEXT BEST ALTERNATIVE forgone when making a
choice.
Microeconomics Studies individual decision-makers — households, firms, and specific
markets.
Macroeconomics Studies the economy as a WHOLE — GDP, inflation, unemployment,
policy.
1.2 The Four Factors of Production
Factor Definition Reward
Land All natural resources (soil, Rent
minerals, water, climate)
Labour Human physical and mental Wages / Salary
effort in production
Capital Man-made tools, machinery, Interest
buildings used in production
Entrepreneurship Risk-taking in combining factors Profit
to create a business
1.3 The Three Basic Economic Questions
ECS1501 & ECS1601 — Complete
Study Notes
UNIVERSITY OF SOUTH AFRICA (UNISA)
Microeconomics · Macroeconomics · SA Economy
Full Definitions | Graphs Explained | Formulas | Exam Tips
Semester 1 & 2 | All Units Covered | 2024/2025
, TABLE OF CONTENTS
PART A ECS1501 — MICROECONOMICS
Unit 1 Introduction to Economics 3
Unit 2 Demand, Supply & Market Equilibrium 5
Unit 3 Elasticity 9
Unit 4 Consumer Theory & Utility 11
Unit 5 Production & Cost Theory 13
Unit 6 Market Structures 16
PART B ECS1601 — MACROECONOMICS
Unit 7 National Income & GDP 20
Unit 8 Money, Banking & Inflation 23
Unit 9 Fiscal & Monetary Policy 26
Unit 10 International Trade & Exchange Rates 29
APPENDIX Formulas & Quick Reference 32
, UNIT 1 Introduction to Economics
Scarcity · Choice · Opportunity Cost
1.1 What is Economics?
Economics is the social science that studies how individuals, firms, and governments make decisions
about allocating SCARCE resources to satisfy UNLIMITED wants. The fundamental economic
problem is SCARCITY.
Economics The study of how scarce resources are allocated among competing
uses to satisfy unlimited wants.
Scarcity Resources are LIMITED but human wants are UNLIMITED — the
central problem of economics.
Resources Inputs used to produce goods and services: land, labour, capital,
entrepreneurship.
Opportunity Cost The value of the NEXT BEST ALTERNATIVE forgone when making a
choice.
Microeconomics Studies individual decision-makers — households, firms, and specific
markets.
Macroeconomics Studies the economy as a WHOLE — GDP, inflation, unemployment,
policy.
1.2 The Four Factors of Production
Factor Definition Reward
Land All natural resources (soil, Rent
minerals, water, climate)
Labour Human physical and mental Wages / Salary
effort in production
Capital Man-made tools, machinery, Interest
buildings used in production
Entrepreneurship Risk-taking in combining factors Profit
to create a business
1.3 The Three Basic Economic Questions
