Unit 1

your-email@example.com (Freedoms4) — Mon, 01 Jan 0001 00:00:00 +0000

April 5, 2026 #

Course Objectives #

A) Develop analytical skills for interpreting consumer decision-making and market behaviour using economic tools.
B) Examine cost and revenue structures of firms.

Definition of Economics by various individuals #

A) Wealth Definition by Adam Smith.
B) Welfare Definition by Alfred Marshall.
C) Scarcity Definition by Robbins.
D) Growth Defintion by Samuelson.

Nature #

A) Economics as a Science #

Positive (what is, based on data and logic)
Normative (what ought to be, opinions, judgements)

B) Economics as an Art #

Pure (what ought to be, ideals and goals)
Applied (real world, how to implement)

A) Described Economics as a Science #

Focuses on laws and cause-and-effect relationships (e.g Law of Demand).
Models to predict economic outcomes.
Data analysis, observation, hypothesis.
Real-world evidence.
Deductive and Inductive reasoning.

Limitaion: Human behaviour involved.

Methods #

A) Inductive (specific -> general).
B) Deductive (general -> specific).

Unit 1 on Freedoms4