TOPIC 1 INTRODUCTION TO ECONOMICS

Nature of Economics

Operation of an Economy

Different Economies

​The nature of economics

• the economic problem – wants, resources, scarcity
  
• the need for choice by individuals and society 
• opportunity cost and its application through production possibility frontiers
  
• future implications of current choices by individuals, businesses and governments
• economic factors underlying decision-making by:
  

– individuals – spending, saving, work, education, retirement, voting and participation in the political process
– business – pricing, production, resource use, industrial relations
– governments – influencing the decisions of individuals and business

The operation of an economy

• production of goods and services from resources – natural, labour, capital and entrepreneurial resources
• distribution of goods and services
• exchange of goods and services
• provision of income
• provision of employment and quality of life through the business cycle
• the circular flow of income

             – individuals, businesses, financial institutions, governments, international trade and financial flows

Economies: their similarities and differences

• examine similarities and differences between Australia and at least one economy in Asia in relation to:
  

                     - economic growth and the quality of life
                     - employment and unemployment                     
                     - distribution of income
                     - environmental sustainability
                     - the role of government in health care, education and social welfare.

Intoduction

The document below provides an interesting activity to introduce Economics and what it is about (source: ​www.tutor2u.net/economics/blog/an-activity-for-the-first-economics-lesson-of-the-year).

economics_1st_lesson.pdf
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