Presentation on Economics

(Basic Economics)

Submitted By:
Submitted To:
 Samrat Vakta
Mr.Farha Tanzim Titil Roll:2018008
Assistant Professor  MD. Rasheduzaman
Dept. of Economics Roll:2018023
 MD. Tarek Aziz
Roll:2018020
Introduction and Overview
1. Definition of Economics
2.Economic Basic
3. Opportunity cost
4. Factors of Production
5. Indifference Curve
6. Economic Systems
7. Budget line
8. Isoquant Curve
9. Economic Challenges
Definition of Economics
Alfred Marshal: Economics is a study of mankind in the ordinary business
of life; it examines that part of individual and social action which is most
closely connected with the attainment and with the use of the material
requisites of well-being.

Lionel Robbins: Economics is the science which studies human behavior

as a relationship between ends and scarce means which have alternative
uses.

Economics is the social science that studies how individuals, businesses,

governments, and societies allocate their scarce resources to satisfy
unlimited wants and needs.
Economic Basics

 Microeconomics: Focuses on individual agents' behavior,

markets, and the interactions between buyers and sellers.
 Macroeconomics: Examines the economy as a whole,
encompassing factors like inflation, unemployment, GDP, and
national income.
Opportunity cost

Opportunity cost is money or benefits lost by not selecting a particular

option during the decision-making process. Opportunity cost is composed
of a business's explicit and implicit costs. Opportunity cost helps
businesses understand how one decision over another may affect
profitability.
Factors of Production
 Land, Labor, Capital, Entrepreneurship
 Land: Land includes all natural resources, such as forests, minerals,
water, and agricultural land, used in the production process. Land
provides the raw materials and space necessary for production.
 Labor: Labor refers to the physical and mental effort exerted by
individuals in the production of goods and services. It is a crucial
factor as it involves the skills, knowledge, and expertise of
individuals.
 Capital: Capital represents the man-made tools, machinery,
equipment, and infrastructure used in the production process. It
enhances the productivity of labor and contributes to the efficiency of
production.
 Entrepreneurship: Entrepreneurship involves the ability to innovate,
take risks, and organize the other factors of production to create and
operate a business. Entrepreneurs are critical in initiating and
organizing the production process. They identify opportunities, make
strategic decisions.
Economic Systems
 Capitalism: Capitalism is an economic system in which the means of
production (such as businesses and factories) are privately owned and
operated for profit. Capitalism emphasizes individual freedom and
entrepreneurship. Individuals are free to start businesses, and the profit
motive is a key driver.
 Socialism: Socialism is an economic system where the means of production are
owned and controlled by the state or the community as a whole. Socialism
aims to reduce economic inequality through the redistribution of wealth and
income. The government often plays a significant role in planning and
managing the economy.
 Communism: Communism is a political and economic ideology advocating for
a classless and stateless society, where the means of production are
collectively owned and controlled.
Indifference Curve
An indifference curve is a chart showing various combinations of two
goods or commodities that consumers can choose. At any point on the
curve, the combination of the two will leave the consumer equally well
off or equally satisfied—hence indifferent.
Supply and Demand
 The interaction of supply and demand is a fundamental concept in
market economies. The market price and quantity of goods and
services are determined by the balance between the quantity supplied
by producers and the quantity demanded by consumers.

 Price Mechanism: Prices serve as signals in a market economy. They

convey information about scarcity, demand, and value. Prices adjust
based on changes in supply and demand, guiding resources to where
they are most needed.
Budget Line
Budget line is a graphical representation of all possible combinations of two
goods which can be purchased with given income and prices, such that the cost
of each of these combinations is equal to the money income of the consumer.
Isoquant Curve

• An isoquant curve is a curve that shows

various combinations of two
factors of production that a firm can use
in order to get the same total output.

• The term isoquant is derived from the

Greek word ‘iso" which means equal,
and ‘quant’ which means quantity. That
is why the isoquant curve is also called
an equal product curve or a production
indifference curve.
 Economic Challenges
 Inequality: Redistribution Policies, Education and Skill Development, Social
Welfare Programs, Labor Market Reforms, Progressive Taxation.
 Poverty: Employment Opportunities, Social Assistance Programs, Microfinance
and Entrepreneurship Programs, Education and Healthcare Access, Inclusive
Economic Policies.
 Environmental Sustainability:Market-Based Environmental Policies, Green
Technologies and Innovation, Regulation and Enforcement, Incentives for
Sustainable Practices, Education and Awareness, Circular Economy Models.
 Interconnected Solutions: Integrated Policy Approaches, Global Cooperation,
Sustainable Development Goals (SDGs).
Conclusion
In summary,
These economic concepts provide frameworks for analyzing and
understanding decision-making processes in both consumption and
production.

Understanding these principles is vital for making informed choices and

optimizing resource utilization in various economic scenarios.
Any Question ?
Thank You!