1. ECO 101: I NTRODUCTION TO M ICROECONOMICS Introduction Naveen Abedin

2. O VERVIEW What is economics? 3 components of economic theory 2 types of economic theory Naveen Abedin

3. W HAT IS E CONOMICS ? Economics is the study of how people choose to use scarce/limited resources to improve their well-being, by essentially trying to satisfy unlimited wants. There are 3 components to basic economics theory: While resources are scarce/limited, wants are unlimited. ResourcesChoicesOutcome Land, capital (buildings, machinery etc.), time, knowledge etc. How to combine resources to produce goods and services? Do the resources and the choices made to use the resources increase people’s well-being? Naveen Abedin

4. T YPES OF E CONOMIC THEORY 2 main branches of economics: Microeconomics: focuses on the actions of individuals and industries, e.g. interaction between buyer and seller, borrower and lender. (micro means small). Macroeconomics: takes a much broader view by analyzing the economic activity of an entire country or the international market place (macro means large). Naveen Abedin