lecture # 1 broad way to understand how economics rise

1. Economics 101
Definition and divisions of economics
Michel Par kin

2. What is economics?
• first we should know about the most
important reason that because of the
Economics come from and rises ?
• This reason is a character of any human ,that
is “we want more than we can get”
• We want many things like food , education ,
health care , cars , ETC….
• And all things that we can get are limited by
many variables like :

3. What is economics?
• Time , income , natural resources , etc…
• So, we meant that our wants is greater than
what we can got and that we call “scarcity”
• As an example of scarcity suppose that you
have an 100$ as an income and your needs
evaluated by 250$ so you faced scarcity by
150$ _ home cost 100$ , car cost 150$_

4. What is economics?
• Because of scarcity we are unable to satisfy all
our wants (needs) , so that we should choose
among our needs ( depends on resources that
we got like income )
• In the last example then we will take home .
• This process of chosen an alternative is
implied a cost , this cost called opportunity
cost .

5. What is economics?
• So , scarcity affect our choices that we take in
such conditions in addition we have an intensives
affect choices too _ intensives is a reward that
encourage or discourage to take or not a choice
_.
• So by all that we conclude that:
• Economics is a social science that studies the
choices that individuals , business , government ,
and all entire societies make as a cope of scarcity
or intensives that affect choices .

6. Divisions of economics
• We have tow divisions of economics :
• 1_ macroeconomics .
• 2_ microeconomics .
• In the macro economics we studying choices
that taken by individuals , business , and how
this choices interact or affect on market in
other hand how this choices are affected by
government policies .

7. Divisions
• But in macroeconomics we study the
performance of national economy and the
global economy .
• Tow big economics Questions to be continued
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