Introduction to Economics

Dr Manasi Kurtkoti
Head Department of Economics, Dr D. Y Patil ACS
College, Pimpri.
IQAC Coordinator
Member- BOS (Economics), SPPU
Adjunct Professor, COEP, Pune
 Chapter 1
•Basic Concepts of Economics
•Overview of Micro and Macro
Economics
•Economics Basics – Cost, efficiency
and scarcity, Opportunity Cost
•Explanation of theories of demand,
supply and market equilibrium
 Basic Concept
Economics: A social science
A science that is concerned with the
production, distribution, and consumption
of goods and services. It studies how
individuals, businesses, governments, and
nations make choices about how to
allocate resources.
 General concepts used

allocate scarce production distribution consumption

resources

economic
Micro Macro efficiency in indicators,
economics economics production (GDP) (CPI).

economic Bank and related

systems. concepts
 Building blocks of economics

•Labor, Trade, and Human Behavior

•humans act with Rational behavior
•key insights for understanding the
behavior of financial markets,
governments, economies etc
 Schools of economics

Classical
School of
economics
Keynesian
school of
economics
 Economic Indicators

•Gross Domestic Product (GDP)

•Retail Sales
•Industrial Production
•Employment Data
•Consumer Price Index (CPI)
Factors of production:4

Land Labor

Enterprise
Capital
 Difference between micro and
macro economics
•Individual vs aggregates
•Price theory vs monetary theory
•Separation vs interrelation
•Individual consumer behaviour vs
aggregate demand
•Partial vs general equilibrium
•Theoretical vs realistic