Also, to familiarize the reader with some of the methodological issues. Ahmed M.Hussen is a Professor and Chair of the Department of Economics, Kalamazoo College, Michigan, USA. Important and Basic Economics Concepts. Academia.edu is a platform for academics to share research papers. Economics, therefore, is a social science, which examines people behaving according to their self-interests. IKT105 U-INTRODUCTION TO ECONOMICS Chapter 1: Basic Concepts, Scope and Methodology of Economics 1 Introduction It is not possible to produce all the goods and services people desire because of limited resources. There are hundreds of basic business principles, most fall within one of seven categories. Course Summary: Economics is a subject whose scope of study pervades much of our daily life, so it is essential that as citizens we understand it on at least a basic level. This course is intended to familiarize students with the fundamental concepts governing our eco- Economics is the science of choice. This section of the website is divided into these seven categories and include over 200 articles explaining these principles. Therefore, people have to prioritize their needs. Written in a clear and accessible style, Principles of Environmental Economics considers a variety of real-world examples to illustrate the policy relevance and implications of key economic and ecological concepts. The definition set out at the turn of the twentieth century by Alfred Marshall, author of "The Principles of Economics", reflects the complexity underlying economics: "Thus it is on one side the study of wealth; and on the other, and Economics studies how individuals and societies prioritize their needs and choose to use scarce resources at their disposal. Concepts n Economics deals with the behavior of people n Utility – “Utility is the power of a good or service to satisfy human needs” Dr. Assakkaf Slide No. 8 • A. J. Clark School of Engineering • Department of Civil and E nvironmental Engineering ENCE 202 Eng . Econ Handout 6 Fundamental Economic Concepts n Value 70 Taxing Principles Making the best of a necessary evil Ruud De Mooij and Michael Keen 72 Inﬂation Targeting: Holding the Line Central banks use interest rates to steer price increases toward a publicly announced goal Sarwat Jahan 74 Regressions: An Economist Obsession A basic statistical tool for distinguishing between correlation and causality The resources that we can use to satisfy our needs and desires are available only in limited quantities. 3 Introduction to Economics I INTRODUCTION The purpose of this chapter is to introduce some of the basic and commonly used concepts in economic analysis.