ECONOMICS

Presented by Group 2
WHAT IS ECONOMICS?
ECONOMICS

• a discipline and set of methodologies within the social

sciences, can be described in a multitude of ways.
• The field focuses on the distribution, consumption, and
production of wealth;
• one can also say that economists study human behavior
and choice regarding buying and selling.
• It's the study of scarcity, the study of how people use
resources and respond to incentives, or the study of
decision-making. *It often involves topics like wealth
and finance, but it's not all about money.
2 BRANCHES
OF
ECONOMICS
 2 BRANCH
• Microeconomics - "study of the choices made by economics
actors such as households, companies, and individual markets"
• Macroeconomics - "examines the behavior of entire economies"
• MICROECONOMICS
• Focuses on how individual
consumers and firm make decisions;
these individuals can be a single
person, a household,
business/organization or a
government agency.
• MACROECONOMICS
• Focuses on supply and demand, and
other forces that determine price
level, making it a bottom-up
approach.
• It also studies firms that produce the
goods and services, and the
industries from which the firms
operate.
 WHAT IS
ECONOMIST?
• An economist is someone who professionally studies
commerce and its related trends. They collect data to
evaluate how resources and services are distributed
within a community or society. They can work in
almost any sector to study a particular market and
help businesses make decisions based on their
economic forecasts. Economists are financial experts
who know how to apply economic theories to current
and future market scenarios. "
THE GOALS
OF
ECONOMIC
S
• ECONOMIC
FREEDOM • Economic equity is another economic and
• Economic freedom
means the market
players such as firms and
consumers have the right
to make their own
decisions.
• ECONOMIC EQUITY
social goal in a market economy. Many people
would agree that equal work should get equal
pay. Legally, discrimination against gender,
race, religion, or disability in employment is
not permitted. The gender and race gap is still
an issue today and economists continue to
analyze the reasons and work on strategies to
overcome discrimination in employment.
 • ECONOMIC
SECURITY
• Security is a basic human need. Therefore
Economic security is also a crucial economic and
social goal. People would like to have security if
something happens and the ability to make new
decisions. Protection against layoffs and illnesses
is the main economic security policy of the
economy. If something happens at work and
some workers get injured, the employer should
cover the costs for their workers, and this right is
protected by the law..
• ECONOMIC
• GROWTH
We all want to have a better job,
better houses or cars. The list of
things we want never ends despite
what we already have. Economic
growth plays a key role here to
enable economies to develop and
produce more jobs, higher quality
products, and higher living standards.
• ECONOMIC EFFICIENCY • PRICE STABILITY
• Price stability is another major
• In economics, we say that the resources are
scarce and the use of resources in production
should be efficient. If the use of resources is not
efficient, then it means there is waste and we
could produce fewer products or lower quality
products compared to what we can achieve with
the resources we have. Thus, economists suggest
that all decision-making processes in the
economy should be rational and efficient to
achieve the economic efficiency goal of the
economy.
economic goal. To have an efficient
economic system policymakers try to
have stable economic figures and
protect the level of prices. Inflation
plays an important role here. If prices
rise too much, individuals would
require more money for their daily
needs and people with fixed incomes
start to experience financial hardship.
 • FULL EMPLOYMENT

• Another economic and social goal in a

market economy is full employment.
According to the full employment goal,
individuals that are able and willing to work
should be able to find jobs.
WHAT IS THE
IMPORTANCE OF
ECONOMICS
 IMPORTANCE OF ECONOMICS

1 2
INFORMS Influences
DECISIONS everything
• Economists provide • Economic issues influence
information and our daily lives. This includes
issues such as tax and
forecasting to inform
inflation, interest rates and
decisions within
wealth, inequality and
companies and
emerging markets, and
governments. This energy and the environment.
knowledge of A broad subject, economics
economics or provides answers to a range
economic intelligence of health, social and political
- is based on data and issues that impact
households and wider
modelling.
communities.
3 4
Impacts industries
• Firms of all sizes and
industries have to rely on
economics, whether that's for
product research and
development, pricing
strategies or how to advertise.
This wide influence means
studying economics can open
up a variety of career options
across all sectors of the
economy, from agriculture to
manufacturing, to banking
and consultancy.
5
Inspires business International
success perspective
• Understanding how
• Economics affects the world
consumers behave is
we live in. Understanding
vital for a business domestic and international
to succeed. perspectives - historic and
Economists use current - can provide a useful
theories and models insight into how different
to predict behaviour cultures and societies
and inform business interact. For international
corporations, understanding
strategies. For
the world economy is key to
example, how to
driving success.
analyse 'big data'.
THATS ALL
THANKYOU
!