Economics

The word economics or economy consists of two Greek words household and law.
So, economics is the science of household management

Various idea about economics
money
business
inflation
work
Governments decision
Business manager decision
Every days decision

For the history of economics.
For the first time Aristotle spoke about this science.
Greek Xenophon wrote the book “Economics”, where he argued economics rules.
“Domostroi” was the same book in Russia.
The first man, who receive the Nobel Memorial Prize in Economic Science, was Jan Tinbergen.

Resources
MATERIAL:
Housing
Heating
Tools
NON-MATERIAL:
Time
Space
Convenience

Resources are limited, but our demand for them certainly is not.
Our every day life is full of different decisions.
Every decision we make is a trade-off.
Resources
Demand
Decision
Trade-off

Areas of economics
Microeconomics-science about business and people
Macroeconomics-science about all economics
Study:
-Economics of
a country
- Economics of the whole world
Study:
- Families household budgets
- Small or large companies
Microeconomics and Macroeconomics are closely related.

Types of economics
CLASSICAL
Value of the goods
Cost of the production
NEOCLASSICAL
Economy work
Supply Demand

THE FATHER OF MODERN ECONOMICS
Adam Smith
He was born on the 5 of June in 1723. But it isn’t an exact date.
His father, also named Adam Smith, was married Margaret Douglas in 1720 and died six months after Smith’s birth. Smith was really close to his mother.
During all life Smith developed his passion for liberty, reason, and free speech. He studied at the University of Glasgow, Oxford. Smith considered the teaching at Glasgow beter that at Oxford, which he found intellectually stifling.
The famous Smith’s book is The Wealth of Nations.
He died on the 17 of July in 1790, in Edinburgh, Scotland.

What’s it good for?
Positive economists
Try
to explain the behaviour of the economy
to guess economic changes before they
happen
Say
- “This is how it is…”
Normative economists
Try
to improve the economy
Say
-“We should…”
Nowadays economists try to answer to this question.

Economists
Formulate theories
Create economic model
Collect data
From this information, economists make theories which explain why the economy works the way it dose
Show relationships between these different data
Include facts and figuries about almost anything, from birth rates to coffe production

Economics in our life.
Advertising

Economics in our life.
Money

Economics in our life.
Shops

Economics in our life.
Banks