A NEW SUBJECT!!!!!!!!!!!!!!

Hey Guyz, Am so sorry about last week. God was delivering me from a very fierce battle and I am just too grateful for my life and my Health. Well on a lighter note, we are introducing a new subject today- ECONOMICS 101.

We are beginning from the scratch today.

ECONOMICS 101 - MEANING AND BASIC CONCEPTS.

Economics in my own understanding is a social science that studies human beings and their behavior. Most especially, their behavior in relation to production, distribution of wealth and business.

Some famous definitions of Economics include-

Alfred Marshal who defined economics as “A Study of Mankind in the ordinary business of life.”

Adam Smith defined economics as “An Inquiry into the nature and causes of wealth of nations.”

John Stuart Mill defined economics as “The Practical science of Production and Distribution of Wealth.”

H.J. Davenport defined economics as “The science that treats phenomena from the stand point of price.”

However, the most generally accepted definition of economics is the one put forward by Prof Lionel C. Robbins. He defined economics as “The Science which studies human behavior as a relationship between ends and scarce means which have alternative uses. This definition is more acceptable because it covers Scarcity, wants, human behavior and choice. The ends here mean human wants, desires and needs which are numerous. Scarce means are the limited available resources used in satisfying the numerous human wants. This all put together just means that the means to satisfy our human wants are limited. Alternative uses means/stands for the scarce resources that can be used for different purposes.

NATURE & SCOPE OF ECONOMICS.

Economics belongs to a group of subjects called the SOCIAL SCIENCES. Other of such subjects is government, political science, philosophy, anthropology, religious studies, psychology, geography, sociology etc. All these subjects deal with various aspects of human behaviour.

Even though Economics is often regarded as a science subject, it does not assume the same level of precision and accuracy as any of the natural/ pure/ physical sciences like chemistry, physics and biology. This is because economics deals with human behaviour, which is very complex and changes from time to time depending on circumstances.

BASIC CONCEPTS OF ECONOMICS.

1. WANTS- are an insatiable desire/ need by human beings to own goods/ services that give satisfaction. The basic needs of man include- Food, Clothing, and Shelter. They are unlimited in number and nature.

2. SCARCITY- is defined as the limited supply of resources which are used for the satisfaction of unlimited wants. In other words, they are the inability of human beings to provide themselves with all the things they desire/want.

3. SCALE OF PREFERENCE-is defined as a list of unlimited wants arranged in the order of their relative importance. That is, in the order in which they matter to you. For instance, a book might be more important to you to buy now than even a car. Your list of priorities in the order of importance.

IMPORTANCE OF SCALE OF PREFERENCE:

a. Ranking of Needs- Scale of Preference helps to put our needs in their right order. Order of Priority.

b. Financial Prudence- It helps to make you more financially managed and accountable.

c. Identification of Highest Priority- It helps you pick out with ease your highest priority.

This concludes our session for today, Hope this new subject is very understandable and fun to know or at least remind yourself about? For your questions send them to- dividiamond@gmail.com and for your comments leave them below. Until we meet again, remain ever blessed and remember you are for SIGNS & WONDERS. God Bless you.