ECONOMICS
Introduction to Economics
Definition of Economics
Economics is the study of how individuals and societies
allocate scarce resources to satisfy unlimited wants.
Microeconomics
Focuses on individual consumers and businesses.
Macroeconomics
Looks at aggregate economic phenomena, such as
national income and overall economic growth.
Basic Concepts
Scarcity
The limited availability of resources compared to the
wants and needs of people.
Opportunity Cost
The cost of forgoing the next best alternative when
making a decision.
Demand
The quantity of a good or service that consumers
are willing and able to purchase at various prices.
Supply
The quantity that producers are willing to offer for
sale at different prices.
Key Economic Models
Market Equilibrium
The point where supply equals demand.
Elasticity
A measure of how much the quantity demanded or
supplied responds to changes in price.
Introduction to Economics
Definition of Economics
Economics is the study of how individuals and societies
allocate scarce resources to satisfy unlimited wants.
Microeconomics
Focuses on individual consumers and businesses.
Macroeconomics
Looks at aggregate economic phenomena, such as
national income and overall economic growth.
Basic Concepts
Scarcity
The limited availability of resources compared to the
wants and needs of people.
Opportunity Cost
The cost of forgoing the next best alternative when
making a decision.
Demand
The quantity of a good or service that consumers
are willing and able to purchase at various prices.
Supply
The quantity that producers are willing to offer for
sale at different prices.
Key Economic Models
Market Equilibrium
The point where supply equals demand.
Elasticity
A measure of how much the quantity demanded or
supplied responds to changes in price.
