Economics Basics: Introduction

By Reem Heakal Economics may appear to be the study of complicated tables and charts, statistics and numbers, but, more specifically, it is the study of what constitutes rational human behavior in the endeavor to fulfill needs and wants. As an individual, for example, you face the problem of having only limited resources with which to fulfill your wants and needs, as a result, you must make certain choices with your money. You'll probably spend part of your money on rent, electricity and food. Then you might use the rest to go to the...

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Unit One - Basic Economic Concepts

Wants - Simply the desires of citizens. Wants are different from needs as we will see below. Wants are a means of expressing a perceived need. Wants are broader than needs. Needs: These are basic requirements for survival like food and water and shelter. In recent years we have seen a percieved shift of certain items from wants to needs. Telephone service, to many, is a need. I would argue, however, that they are wrong. Scarcity - the fundemental economic problem facing ALL societies. Essentially it is how to satisfy unlimited...

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Positive Versus Normative Analysis in Economics

While economics is largely an academic discipline, it is quite common for economists to act as business consultants, media analysts, and advisers on government policy. As a result, it's very important to understand when economists are making objective, evidence-based statements about how the world works and when they are making value judgments about what policies should be enacted or what business decisions should be made. Positive Analysis Descriptive, factual statements about the world are referred to as positive statements by economists....

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Economics Basics: Introduction

By Reem Heakal Economics may appear to be the study of complicated tables and charts, statistics and numbers, but, more specifically, it is the study of what constitutes rational human behavior in the endeavor to fulfill needs and wants. As an individual, for example, you face the problem of having only limited resources with which to fulfill your wants and needs, as a result, you must make certain choices with your money. You'll probably spend part of your money on rent, electricity and food. Then you might use the rest to go to the movies...

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The Difference Between Finance And Economics

By Stephen D. Simpson, CFA Although they are often taught and presented as very separate disciplines, economics and finance are interrelated and inform and influence each other. Investors care about these studies because they also influence the markets to a great degree. Here we take a look at finance and economics, what they can teach investors and how they differ. (For background reading, see Is finance an art or a science?) Tutorial: Economics BasicsECONOMICS What is it? Without falling back on dry academic definitions, economics is...

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