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ECONOMICS 11 LECTURE 1: INTRODUCTION

What is Economics?. It is a social science that deals with the allocation of scarce resources to satisfy unlimited human wants.. Methodology of economics Framework Assumptions (e.g., ceteris paribus) Models (math, graphs, equations). Human Natural Physical. Ori

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ECONOMICS 11 LECTURE 1: INTRODUCTION

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    1. ECONOMICS 11 LECTURE 1: INTRODUCTION

    2. What is Economics? It is a social science that deals with the allocation of scarce resources to satisfy unlimited human wants.

    3. Origin of the word Economics Oikonomia Greek word that means household management

    4. Two Main Branches Microeconomics - studies behavior of individual economic units - households, firms, markets Macroeconomics Focus is on the whole/aggregate economy E.g., GNP, GDP, inflation, unemployment

    5. Positive vs. Normative Economics Positive Economics Answers the question: What is? The price of gasoline is Php 42.90/liter. The population growth rate is 2.3%. 11 million Filipinos live on $1 a day. Normative Economics Answers the question: What should be? The price of gasoline should be Php 40.0/liter. The population growth rate must only be at 2 %. Filipinos ought to live on at least $5 a day.

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