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Economics by Mind Map: Economics

1. Basic Concepts of Economics

1.1. Economic analysis is divided into two main branches: microeconomics and macroeconomics. These two branches are important for scarcity problem.

1.2. Microeconomics is the study of decisions of people and business and the interaction of those decisions in markets. The goal of microeconomics is to explain the prices and quantities of individual goods and services.

1.3. Macroeconomics is the study of the national economy as well as global economy and the way that an economic system works. The goal of macroeconomics is to explain general price level, national income, employment, production.

1.4. As we have learned there are the scarce means of an economy and the unlimited wants of people. Because an economy’s production is limited by its resources and technological knowledge, every society, no matter how it is rich or poor, makes choices; between health care and yachts, between highways and tanks

2. What is Economics?

2.1. The English term “economics” is derived from the Greek word “oikonomia” that means “household management”. Economics was first read in ancient Greece

2.2. Economics studies how to use the limited resources to satisfy the unlimited wants of people

2.3. Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

2.4. Economic causes lie at the roots of maximum social problems. The social workers need to have knowledge of economics to diagnose and solve the problems of poverty, unemployment, illiteracy, excessive growth of population, lack of housing and medical facilities etc.

2.5. The knowledge of economics is necessary to know and understand the socioeconomic events of different countries, international relationship, global commerce etc.