MD RABIUL
ISLAM
Associate Professor,
Economics Dept.
Govt. Girls College
Learning outcomes:
1)Definition of
Economics/Concepts of Economics
2)Major Economic problems
3) Principles of Economics
Definition / Concept of Economics:
a) Classical Economist:
**”Economics is the science of welth”-Adam
smith
**”Economics is the science which treats of
wealth”-J.B. Say
b)Neo-Classical Economist:
**”Economics is a study of mankind in the
ordinary business of life”-A. Marshal
C) Modern Economist……..>(L. Robbins)
“Economics is the science which studies human
behavior as a relationship between ends and
Scarce means which have alternative uses”
Basic Economic Problems:
1) Unlimited wants
2) Limited resources
3) Alternative uses of limited
resources
## According to the analysis of the nature
of Economics great economist P.A.
Samuelson shows two basic problems:
1) Scarcity and 2)Choice
The central /major problem of economics is the
allocation of scarce resources for the satisfaction
of unlimited wants . In this context, the fundamen
Problems facing economy are:
1)What to produce?
2)How to produce?
3)For whom to produce?
4) Are the resources
economically used?
5)Problem of full employment.
6)Problem of Growth.
Branches of Economics
ECONOMICS
MICRO ECONOMICS MAIN MACRO
ECONOMICS
Sub Branches:
a)Development economics
b)International economics
c)Agriculture economics
d)Industrial economics
e)Environmental economics
f)Energy economics
g)Rural economics
h)Urban economics … etc
MICRO ECONOMICS
Micro economics is a branch of mainstream
economics that studies the behavior of
individuals and firms in making decisions
regarding the allocation of scarce
resources and the interactions among
these individuals and firms. K.E. Boulding
says, “Micro economics is the study of
particular firms, particular households ,
individual prices, wages , incomes,
individual industries and particular
MACRO ECONOMICS
Macro economics is a branch of
economoics dealing with performance,
structure, behavior and decision making
of an economy as a whole. Prof.
Handerson –Quandt
Says – “Macro economics , which is the
study of broad aggregates such as total
employment
national income, inflation, investment,
consumption, savings etc.
Principles of economics
Economics is the social science that deals with
the production, distribution, and consumption of
goods and services and with the theory and
management of economic systems. All
economists agre on one thing, the economy is
large and it is unpredictable. However ,
throughout the years economists have developed
some simple but widely applicable principles that
are useful when trying to understand discisions
that are made by everyday people to the
workings of highly complex markets. There are
These principles are as follows –
i) Scarcity principle
ii) Cost-benefit principle
iii) Principle of unequal costs
iv) Principle of comparative
advantage
v) Principle of comparative
advantage
vi) Principle of increasing
