Chapter 1
Economics and the Economy
David Begg, Stanley Fischer and Rudiger Dornbusch, Economics,
6th Edition, McGraw-Hill, 2000
Power Point presentation by Peter Smith
1.2
What is Economics?
■
ECONOMICS ...
■
is the study of how society decides:
–
What
–
For whom
–
How
to produce...
1.3
The price of oil
0
5
10
15
20
25
30
35
40
US$ per barrel
Tripled in 1973-74, and doubled again in 1979-80

100%
Population GNP
LIC MIC HIC