Introduction to Economics
A foundational course covering the basic principles of economics — scarcity, supply & demand, market structures, and how economies are organized.
What is Economics?
The study of scarcity, choice, and how societies allocate resources.
Economics is the study of how societies allocate scarce resources to satisfy unlimited wants. Every decision — from what you eat for breakfast to how a government funds its military — involves economic trade-offs.
Scarcity: The Fundamental Problem
Resources (time, money, land, labor) are limited, but human wants are unlimited. This mismatch is called scarcity, and it forces us to make choices. Economics studies those choices.
Opportunity Cost
Every choice has a cost — not just in money, but in what you give up. If you spend ₹500 on a movie, the opportunity cost is whatever else you could have done with that ₹500. If a country spends more on defense, it has less for education.
Positive vs. Normative Economics
- Positive economics — Describes what IS: "Unemployment is 7%." Based on facts and data.
- Normative economics — Prescribes what SHOULD BE: "The government should reduce unemployment." Based on values and judgments.
Understanding this distinction is crucial: most economic debates mix facts with opinions.