Grade 9 Economics Unit1 Part 1 9ኛ ክፍል ኢኮኖሚክስ ትምህርት

Grade 9 Economics Unit1 Part 1 9ኛ ክፍል ኢኮኖሚክስ ትምህርት Unit 1: Introducing Economics Key Concepts Economics Economic Theory Efficient Allocation Nature Of Economics Scarcity Microeconomics Macroeconomics Deductive Method, Inductive Method, Normative Economics Positive Economics Households Business Firms Government 1.1 Meaning of Economics Definition of Economics economics is derived from the ancient Greek word oikonomia-the management of a family or a household.” first studied in ancient Greece. is a branch of the social sciences. its prominence has increased in recent years in response to worldwide economic problems. economics At present, poverty, unemployment, inflation, recession, population explosion, etc., are worldwide problems. In order to understand and find solutions to such problems, an in-depth knowledge of economics is essential. There is no completed definition of economics yet, and the definition is essentially under improvement in areas such as the wealth definition, the welfare definition and the scarcity definition. Based on the above considerations, economics can be defend as follows Economics is a branch of social science that studies the efficient allocation of scarce resources so as to attain the maximum fulfillment of human needs. As a science of choice, economics studies how people choose to use scarce or limited productive resources to produce various commodities Land Labour Equipment technical knowledge, etc. The following statements are derived from the above definition of economics: Economics studies about scarce resources; It studies about allocation of resources; Allocation of resources should be efficient; Human needs are unlimited. The objective of economics is to study how to satisfy the unlimited human needs up to the maximum possible degree through allocating the scarce resources efficiently. The Nature of Economics Some economists consider economics a ‘science’ while others consider it an “art.” Economics as a Science Science produces a systematic and organized body of knowledge that links causes and effects. This knowledge can be regarded as the knowledge of “what is”. In economics, several facts are systematically collected, classified, analyzed, and interpreted to make predictions about the future. In this sense, economics could be considered a science Economics as an Art definitions of art is a technique or a way of doing or achieving something. When dealing with problems such as unemployment, poverty, and inflation, economics provides principles and methods through which these problems can be solved. Hence, economics extensively examines the nature and causes of economic problems and sets the procedures for finding their solutions. From this perspective, we can consider economics as an art 1.2 Branches of Economics