Economics Introduction Frederick University 2014

Introduction The Doctor has no free appointments open till December … but he has a €50 appointment open this afternoon

Introduction Scarcity of Resources People always want more than they can afford Scarcity is a relationship between needs and resources - Resources = Factors of Production: Labor Land Capital (Entrepreneurship) - Technology – a way of putting resources together

Introduction Sources of Economic Problems Scarcity of resources Technological changes Changes in tastes and preferences

Introduction Main Economic Questions Sources Scarcity of resources Technological changes Changes in tastes and preferences Questions What (and how much) How For whom

Introduction Economic Agents Households Firms Government L, N, K Final goods and services

Introduction What Economics is About Economics is the study of how economic agents make decisions what to produce, how to produce, and for whom to produce

Introduction Microeconomics Macroeconomics International Economics Mesoeconomics Comparative Economics

Modeling Economic Relationships Schematic Models Graphic Models Mathematical Models