A. Key Def—what is economics? What is micro econ? What is macro econ?
- Economics is part of social sciences dealing with human behavior
- Walter Adams – economic professor who was one of the best – but he
would testify on capital hill and upset people by what he said
- Part of the problem is that people who write economic books don’t
write the books in plain English – they use difficult language.
- Micro – small. Focuses on individual sector of a large picture
- Macro – large – looks at the whole system of economic activity. The
B. Needs vs. Wants
- Needs: food – some people eat what they can when they can; water –
pure clean drinking water; shelter- roof over your head, a safe place
(but people live where they can live sometimes) clothing
- Consumer’s society; how much do you really need? Society is
obsessed with material goods.
- Each generation considers something to be necessary that generation
before does not.
C. Types of Economic System
- Tradition: anthropologist concerned with traditional society; culture,
- Command: system which is an extension of the state (totalitarian
ideas where all the decisions are centrally made by gov. Nazi
Germany, the decisions in an economic system is based on production
- Market: most economist concerned
KEY ECONOMIC THEORIST
- Adam Smith, the Wealth of Nations. - The invisible hand