(DPB1023)
Chapter 1
INTRODUCTION TO
MICROECONOMICS
LEARNING OUTCOMES
At the end of this lesson, the
students should be able to:
i. Describe microeconomics in general.
ii. Describe economic problems.
iii. Describe world economic systems.
iv. Distinguish the benefits of every world
economic system.
v. Describe how the world economic
systems solve basic economic problems.
DEFINITION OF ECONOMICS
Economics is a social science study which
concern on how human being allocates the
limited resources in order to fulfill the
unlimited needs and demands.
Economic can be subdivided into two branch;
macroeconomic and microeconomic.
Microeconomic analyzes the specific/individual
economic units in details such as households,
firms and government.
Macroeconomics, on the other hand, analyzes
the aggregate behavior of the entire economy.
SCOPES OF ECONOMICS
MICROECONOMICS
VS MACROECONOMICS
What sho
we r uld I
l d o b uy for lunch?
h ou rice
S e
d uc r ? Price of s
ugar
o a
pr c increase!
Build more s
P r ic e of shirt
hospitals or
d e c rease,
GOVERNMENT schools? I buy OPEN ECONOMICS
s h o u ld
t of o re o r less?
Impac m
doing How does
r n at io nal
int e infation
t ra de.
What is occurs?
unemp the
loymen
rate in t
W h at h e
Malays
i a? n c edt
e e
infu est rat
r
HOUSEHOLDS inte rease? FIRMS
d e c
to
THREE BASIC ECONOMIC PROBLEMS
. Ex: Umie has RM5 and she would like to buy a book n a pen
which cost RM5 each (scarcity). Umie has to choose either to
purchase a book @ a pen which would satisfy her needs (choices).
If Umie chooses the book, the pen is the opportunity cost because
it is the second best alternative which she has to forgo.
CONCEPTS OF ECONOMIC PROBLEMS
THANK YOU