Introduction to Economics

Name: Introduction to Economics
Author: Emilio Bruna

Learn how to define economics and understand its common uses.

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Course: On-Demand

(bouncy music) In these lessons, you'll explore the concept of economics, why it's important, and how it's used. You'll also learn about qualitative and quantitative economic approaches, how they're used by economists, and how they differ. Finally, you'll gain insight about microeconomics, macroeconomics, and how they can be integrated. The word economics comes from the ancient Greek language and can be roughly translated as management of the household. This meaning is still relevant today, except now economists study the efficient management of business and government, as well as the household. Economists also study how different economic units like cities, states, provinces, or countries manage the resources or factors of production available to them. Resources are the input used to produce goods and services which are the output and what consumers purchase. It's important to be responsible and efficient in managing these resources because their supply is subject to limitations. Economists have broken down the available resources into four general categories. Land. This includes all naturally occurring resources such as water, minerals, trees, coal, oil, or the air that you breathe. It's important to remember that some of these resources are renewable and some aren't. Fresh water, oxygen, and solar energy are examples of renewable resources, while coal, oil, and natural gas, known as fossil fuels, are examples of non-renewable resources. Labor. This refers to the number of workers available to produce goods and services and the combined skill levels of those workers. One example of a labor resource is the plumber who fixes a leaking faucet for you. The plumber contributes to the economy by providing a valuable service. Another example of a labor resource is the baker who makes the breads and the cakes that you buy. The baker contributes to the economy by providing goods that you want or need. Physical capital. This resource includes the equipment designed and built by humans to produce goods and services. Capital resources range from the office building or manufacturing plant that you work in, to the computer or machinery that you use to do your job. While capital is sometimes used to reference money, money isn't considered a resource. Money is a means or a method of payment invented by humans to facilitate the purchase of goods and services. And entrepreneurship and technology. These are resources that help stimulate and expand the economy. An entrepreneur is someone who takes resources, such as land, labor, and capital and creates new goods or services. Examples of entrepreneurs are Steve Jobs, Arianna Huffington, and Elon Musk. Entrepreneurs often take advantage of the constant advances in technology to develop new goods and services. With an understanding of these resources, you can start thinking like an economist. Desires are infinite but resources are scarce. Because of this, resources should be used efficiently. If a nation uses all its steel available to build infrastructure, it wouldn't have enough to produce cars and other consumer products. Scarcity influences how economic units like households, businesses, or governments make choices about what produce, how to produce, and for whom.

Beginner Provider : Emilio Bruna 6 Lessons · 16m in Arabic, German, English, Spanish, French, Portuguese, Urdu, Chinese

Course Description

Resources are used to produce goods and services. It’s important to manage these resources responsibly and efficiently because their supply is often limited. Economists study how different units like cities, states, provinces, and countries manage the resources available to them. Since resources can be scarce, the study of economics can help you understand how to effectively allocate and distribute those resources. To make it more manageable, the overall concept of economics can be separated into two subcategories: microeconomics and macroeconomics. Using these categories can help economists more effectively organize their information.

In this course, Introduction to Economics, you’ll learn about the meaning of economics, understand its significance, and discover its many uses. The following lessons will also introduce you to the concepts of microeconomics and macroeconomics, explain their definitions, and identify their areas of overlap. You’ll also explore the different uses of qualitative and quantitative economics and understand the differences between them.

What You'll Learn

Learn the definition of economics and what it means
Identify the different uses of economics
Define microeconomics and macroeconomics and their areas of overlap
Distinguish between qualitative and quantitative economics
Explore how microeconomic and macroeconomic insights are integrated

Key Takeaways

Resources are used to produce goods and services, and because their supply is often limited, they must be managed responsibly and efficiently.
Economists study how units such as cities, states, provinces, and countries manage the resources available to them.
Because resources can be scarce, the study of economics helps explain how to effectively allocate and distribute them.
Economics can be separated into two subcategories, microeconomics and macroeconomics, to help organize information more effectively.
Economics can be approached through both qualitative and quantitative methods, which differ from each other.

Frequently Asked Questions

What does this Introduction to Economics course cover?

The course teaches the meaning and significance of economics and its many uses, introduces the concepts of microeconomics and macroeconomics along with their definitions and areas of overlap, and explores the different uses of qualitative and quantitative economics and the differences between them.

What is the difference between microeconomics and macroeconomics in this course?

The course defines microeconomics and macroeconomics as the two subcategories of economics, identifies their areas of overlap, and covers integrating microeconomic and macroeconomic insights.

What topics are included in the lessons?

The lessons are: What is Economics?; Qualitative and Quantitative Economics; Uses of Economics; Defining Microeconomics and Macroeconomics; Integrating Microeconomic and Macroeconomic Insights; and Test Your Knowledge.

Why is studying economics useful?

Because resources can be scarce, studying economics helps you understand how to effectively allocate and distribute the limited resources available.