Course description

Detailed Explanation of Economics

Economics is a social science that studies how people, businesses, and governments make choices to manage limited resources efficiently. It explores production, distribution, and consumption, aiming to balance supply and demand while promoting economic well-being.

Branches of Economics

1. Microeconomics (Small-Scale Economics)

Focuses on individual economic units, such as consumers, businesses, and markets. It studies:

• Supply and Demand – How prices are determined in markets.
• Consumer Behavior – How individuals make purchasing decisions.
• Market Structures – Competition types (monopoly, oligopoly, perfect competition).
• Production and Costs – How businesses optimize resources to maximize profits.

2. Macroeconomics (Large-Scale Economics)

Studies the overall economy and national/global trends. It examines:

• Gross Domestic Product (GDP) – Measures a country's total economic output.
• Inflation and Deflation – Changes in the purchasing power of money.
• Unemployment Rates – Impacts of job availability on the economy.
• Fiscal and Monetary Policy – Government strategies to regulate growth.

Importance of Economics in Society

1. Resource Allocation – Ensures the best use of scarce resources in production and consumption.
2. Economic Growth – Drives national development, higher incomes, and better living standards.
3. Government Policy – Helps formulate policies on taxation, spending, and trade.
4. Market Regulation – Prevents monopolies and promotes fair competition.
5. Personal Financial Decisions – Guides saving, investing, and spending wisely.
6. Global Trade – Manages imports, exports, and international economic relations.

Economics influences everyday life, from job opportunities to the prices of goods and services. It is crucial for sustainable development, wealth distribution, and financial stability.

What will i learn?

• Brief knowledge about Economics, its importance and types along with the real world examples