The concept of economics
What is economics?
Economics as a subject has been viewed by different
scholars at different periods. The following are their
different views;
1.Economics is an inquiry into the nature and causes of
wealth of nations (Adam Smith 1776)
2. Economics is the practical science of production and
distribution of wealth (John Stuart Mill 1843)
3. Economics is the study of mankind in the ordinary
business of life (Alfred marshal 1890)
4. Economics is a science which studies human behaviour
as a relationship between ends and scarce means which
have alternative uses
(Lionel Robinson 1932)
Scope of economics
 Economics as a social science subject concerns itself with
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Economic actors and their economic activities.
(A) Economic actors ; these actors are
-individuals;
-firms; and
-government while
(B) Economic activities
-production;
-distribution; and
consumption
Importance of Economics
(Why We study Economics)
 Allocation of resources
 Choice Making
 Problem analysis
 Production
 Business management
 In understanding the complex nature of of economic
life
 It assists in promoting economic growth and
development
Why Economics is a science
 Economics is called a science subject because it uses
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scientific measures to explain observed phenomena and
predict the outcome of future events. Economics therefore,
possesses those attributes of science, like
Investigation;
Observation;
Orderly Arrangement of data;
Clasification ; and
Interpretation of facts
Therefore it is as a result of the above reasons that
students of Economics of universities graduate with
Bachelor of Science (B.sc) degree and not Bachelor of Arts
(B.A) degree
Branches of Economics
 Micro Economics: This is the study of Economic
behaviour of individual decision making units like
consumption, firms etc
 Macro Economics: This is the comprehensive analysis
of economic behaviour and complete interaction of
the whole economy involving unemployment,
economic growth and development, balance of
payment etc.
QUESTION: From your understanding of the topic, give any two definitions of economics.
SCHEME OF WORK ECONOMICS
S S 1 (FIRST TERM)
Week
Topics
Content
1
Orientation
Orientation of students
2
Principle of economics
3
Basic concepts
Meaning of economics
Importance of economics
Methodologies
Economics as a science
Wants, scarcity, scale of preference,
choice and opportunity cost
4
Basic tools for economic analysis
1
5
Basic tools for economic analysis 2
6
Concept of demand
7
Concept of supply
-definition of tools,
Uses and importance
Frequency distribution
Measures of central tendency
-mean
-mode
-median
-meaning, schedule, curves and laws
Factor affecting demand
-meaning, schedule, curves and laws
Determinants of supply