these slides related to economics

1. ECON-101
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2.  The word “Economics” originates from a
Greek word “Oikonomos”
 Oakes : Household
 Nomo's: Management
 In this way, Oikonomos deals with household
management.
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3.  Science of Wealth
 Adam Smith (1776) defined economics as, “ A
science which inquires into the nature and
causes of wealth”.
 He emphasized the production and growth of
wealth as the subject matter of economics.
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4. Science of Material welfare
Alfred Marshall (1890) stated, ““Economics is
a study of mankind in the ordinary business
of life; it examines that part of individual and
social action which is most closely connected
with the attainment and with the use of
material requisites of wellbeing”.
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5.  ‫مارشل‬ ‫الفریڈ‬(1890)، ‫کہا‬ ‫نے‬"‫کاروبار‬ ‫عام‬ ‫کے‬ ‫زندگی‬ ‫معاشیات‬
‫اس‬ ‫کے‬ ‫عمل‬ ‫معاشرتی‬ ‫اور‬ ‫انفرادی‬ ‫یہ‬ ‫ہے۔‬ ‫مطالعہ‬ ‫کا‬ ‫انسانیت‬ ‫میں‬
‫کی‬ ‫بھالئی‬ ‫اور‬ ‫ساتھ‬ ‫کے‬ ‫حصول‬ ‫جو‬ ‫ہے‬ ‫کرتا‬ ‫پڑتال‬ ‫جانچ‬ ‫کی‬ ‫حصے‬
‫ہے۔‬ ‫ہوا‬ ‫جڑا‬ ‫سے‬ ‫قریب‬ ‫زیادہ‬ ‫ساتھ‬ ‫کے‬ ‫استعمال‬ ‫کے‬ ‫ضرورت‬ ‫مادی‬
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6.  Lionel Robbins (1932) said: “Economics is the
science which studies human behavior as a
relationship between ends and scarce means
which have alternative uses.”
 This is the modern definition of Economics
which is used and followed up-till now.
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7. ‫رابنز‬ ‫لیونل‬(1932)‫کہا‬ ‫نے‬" :‫اختتام‬ ‫کا‬ ‫رویوں‬ ‫انسانی‬ ‫جو‬ ‫ہے‬ ‫سائنس‬ ‫اکنامکس‬
‫کے‬ ‫جس‬ ‫ہے‬ ‫کرتی‬ ‫مطالعہ‬ ‫پر‬ ‫طور‬ ‫کے‬ ‫تعلقات‬ ‫مابین‬ ‫کے‬ ‫وسائل‬ ‫قلیل‬ ‫اور‬
‫ہیں۔‬ ‫ہوتے‬ ‫استعمال‬ ‫متبادل‬"‫تک‬ ‫اب‬ ‫جو‬ ‫ہے‬ ‫تعریف‬ ‫جدید‬ ‫کی‬ ‫اکنامکس‬ ‫یہ‬
‫ہے۔‬ ‫جاتی‬ ‫کی‬ ‫پیروی‬ ‫کی‬ ‫اس‬ ‫اور‬ ‫ہے‬ ‫جاتی‬ ‫کی‬ ‫استعمال‬
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8. In other words, Economics is defined as: “the
allocation of scarce resources among the
competing ends efficiently for the
optimization of our goals.”
Main points:
 Scarce (less than required)
 Resource (anything used in the economic
activity)
 Competing Ends (desires that compete with
each other)
 Scarce Resources but Unlimited Wants
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9. According to Prof. A. C. Dhas, “Economics is
the study of choice making by individuals,
institutions, societies, nations and globe
under conditions of scarcity and surplus
towards maximizing benefits and satisfying
their unlimited needs at present and future”.
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10.  Economics is about the study
of scarcity and choice
 Economics finds ways of meeting unlimited
wants with scarce resources
 The aim of economics is optimizing our goals
(maximize the profits, minimize costs, etc)
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11. Microeconomics Macroeconomics
 Branch of economics
concerned with
decision making by
individual economic
unit i.e. customers,
workers, households
and business firms.
 Branch of economics
which examines the
economy as a whole or
aggregate, such as the
government,
household sector,
business sector.
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13.  There are four factors of production.
 Land includes all the natural resources
present above as well as below the soil
surface. These include forests, minerals, oil
deposits, water resources, wind power,
sunlight and arable land.
 Labour consists of the physical actions and
mental activities that people contribute to the
production of good and services. The
activities of a clerk, mechanic, teacher,
physician, daily laborer all fall under this
category.
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14.  Capital includes all man-made goods and
services which assist in the process of
production.
 Capital goods are different from consumer
goods. Capital goods are machinery and tools
that are used in production of consumer goods.
They indirectly satisfy the consumers. However,
consumer goods provide satisfaction to the users
directly.
 Enterprenourship is a human resource different
from labour. It combines the resources (land,
labor, capital) to produce a good or a service. He
is the driving force of the production process.
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15. Positive Economics Normative Economics
 Branch of economics
which focuses on facts
and cause-and-effect
relationships.
 ‘What is’
 Avoids value judgment
 Statements are given
 Branch of economics
looks at the desirability
of certain aspects of
the economy.
 ‘What ought to be’
 Includes value
judgment
 It is told whether the
situation is good or
bad
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16.  Example:
 The literacy rate in
Pakistan is 65%.
 Example:
 The sixty-five percent
literacy rate in Pakistan
is very low.
Positive Economics Normative Economics
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17.  In addition to describing whether the certain
scenario is good or bad, prescriptive
economics deals with the policy actions
required to improve the situation.
For Example:
 Pakistan should provide free access for all
(without gender discrimination) to schools
and colleges to increase the literacy rate
significantly (gives policy recommendations).
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