Economics is defined as the social science that studies the choices individuals, businesses, governments, and societies make in response to scarcity and incentives. There are two main divisions of economics: microeconomics and macroeconomics. Microeconomics examines choices at the individual and business level and their interactions in markets, while macroeconomics analyzes the performance of national and global economies at an aggregate level.

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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