Week 1 - Essence of Economics
Essence of Economics 1. Introduction to Economics: Definitions and Importance Definition: Economics is the study of how individuals, businesses, and societies allocate limited resources to satisfy their limitless wants. It's a social science that focuses on the production, distribution, and consumption of goods and services. Importance of Economics: Decision Making: Economics equips individuals and policymakers with a framework to make informed choices in everyday situations and larger policy decisions. Resource Allocation: Economics provides insights into how resources are distributed among different sectors and individuals in society, ensuring efficient use. Understanding Markets: Economics illuminates the functioning of markets, revealing the intricate dynamics between buyers and sellers. Policy Formulation: Governments worldwide lean on economic principles to design policies that aim at growth, stability, and equity in society. 2. Scarcity, Choices, and Trade-offs Scarcity...