ECON-221 Lecture Notes - Lecture 1: Economic Methodology
20 Aug 2020
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Document Summary
Economics is a social science, which seeks to explain the economic basis of human society. Its the study of how society makes choices about what output is to be produced, by what means and for whom, i. e. it is the study of how the society allocates its scare resources among competing alternatives. The economic resources referred to in this definition are usually classified as land, labor, capital and enterprise. The problem of allocating these resources to achieve give ends is fundamental in the study of economics. Economics provides the skills for analyzing, explaining and where appropriate offering solutions to economic problems. Economics has a core of useful theory that explains how markets work and that evaluates their performance. Microeconomics is concerned with the behavior of individual firms industries and customers or households and deals with the effects of individual taxes and specific public spending programmes.
