Class 8 Economics ( Chapter 1 , Part 1)

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Quality Education For All

2. ECONOMICS

3. INTRODUCTION
TO ECONOMICS
CHAPTER - 1

4. OUTLINE OF THE LESSON

5. In this chapter you learn :
• The meaning of Economics and basic
concepts of Economics
• The importance of studying Economics
• Identify economic activities through
narrating the basic economic problems.
• The difference between Micro economics
and Macro economics.

6. Meaning and Importance of Economics
• “Economics is defined as the social science that
examines how people choose to use limited or scarce
resources in attempting to satisfy their unlimited
wants.”
• “Economics is the study of wealth” - Adam Smith
(1776) (Father of Economics)
• “Economics is the science which studies human
behavior as a relationship between given ends and
scarce means which have alternative uses.” - Lionel
Robbins (1932)

7. Meaning and Importance of Economics
• “Economics is the study of how societies use scarce
resources to produce valuable commodities and
distribute them among different people.” - Paul A.
Samuelson (1948)
• Economics is the study of people in the ordinary
business of life.” - Alfred Marshall (1890)

8. Therefore, scarcity and choice are basic
problems which everyone faces and which
are the central problems of Economics.

10. The Production Possibilities Frontier

11. Factors of production

13. NEED WANT

14. NEED WANT

15. What are the things we use on daily basis ?

16. GOODS

17. WHAT ARE GOODS ?
• Goods are the physical and
tangible objects like food,
clothes, book, bicycle,
phone, TV, etc.

18. EXAMPLES

19. Service

20. What is service ?
• Services are intangible things that are
also required for our use. The
common services used are electricity,
transportation, education, medical
care, tailoring, music, mobile and
internet service, etc.

21. EXAMPLES

22. Who use goods and services?

23. Who are we ?
People using goods and
services are called the
‘consumers’.

24. Who are producers?
• People engaged in the
production of the goods and
services are called the
‘producers’.

26. How does these goods and services
reaches to the ultimate consumers?

27. Distributors

28. These goods and services are
made available to us at our
place through transporters,
traders and shop keepers, who
are called the ‘distributors’

30. How do we buy the
required goods and
services?

32. We buy the required goods and
services by paying the given
‘price’.

33. How do we get
money?

34. We are engaged in work or we
are employed. By virtue of the
‘employment’, we get ‘income’.

35. What is the role of our
government?

36. • ‘Government’ is responsible
for maintaining law and
order and providing some
common basic facilities

37. Good roads, electricity, internal
and external security. The
government imposes ‘taxes’ for the
goods and services it provides.
EXAMPLES

39. How will a rational consumer allot Rs. 20 ?

40. Economics and its
origin!

41. • The word “economics” comes
from the Greek words “oikos,”
meaning “household,” and
“nomos,” meaning “management”.
Thus, economics refers to the art
of “household management”

42. What is an
economy ?

43. • An economy is the large set of inter-
related production and consumption
activities that aid in determining
how scarce resources are allocated.