Assignment #1

Name: Antonio Peña

Class: Grade 11
Subject: Economics
Teacher: Mr. Brooks
Date: 23/08/2024
Content Page
Chapter 1 What is Economics?………………………………………………………………Page 1

Chapter 2 When was it first introduced?………………………………………………….…Page 2

Chapter 3 What is the impact of economics in society?……………………………..……Page 3

Chapter 4 How does economic impact in your life?……………………………………..…Page 4

References ……………………………………………………………………………………Page 5
What is Economics?

Economics can be defined in a few different ways. It’s the study of scarcity,
the study of how people use resources and respond to incentives, or the study
of decision-making. It often involves topics like wealth and finance, but it’s not
all about money. Economics is a broad discipline that helps us understand
historical trends, interpret today’s headlines, and make predictions about the
coming years.

Economics ranges from the very small to the very large. The study of
individual decisions is called microeconomics. The study of the economy as a
whole is called macroeconomics. A microeconomist might focus on families’
medical debt, whereas a macroeconomist might focus on sovereign debt.

Economics affects everyone’s lives. Learning about economic concepts can

help you to understand the news, make financial decisions, shape public
policy, and see the world in a new way.

Page 1
When was it first introduced?

Adam Smith was a Scottish philosopher and economist who is popularly

known as the father of economics. He was the pioneer behind the concept of
classical free market theory.

The first economic study was done by Adam Smith in 1776 with his book "An
Inquiry into the Nature and Causes of the Wealth of Nations". This was one of
the first books to introduce economics to the world. It included how to
measure objects, trade, and money among many other topics that are still
studied today. Smith and a few other economic thinkers like David Hume and
Alfred Marshall gave birth to economics around the time of the Industrial
Revolution.

Smith argued that individuals have a natural tendency to promote their own
interests in a free market economy in coordination with others in a social
environment. He believed that this would lead to an equilibrium in which
everyone's economic decisions benefit themselves. He developed the concept
of division of labour and stressed upon the fact that rational self-interest and
competition could lead to economic prosperity.

Then the economic revolution was a time of incredible change in the Western
world at the start of the 19th century.

The Industrial Revolution began to reshape how people lived. Factories

popped up all over Europe and America, which required workers.

People moved to cities, often far from home, to find jobs. They were attracted
by better wages that factories offered for often tedious work. During this time,
many people believed that workers deserved better working conditions and
fair wages.

This led to improved conditions of the working class as working men and
women led labor strikes to demand safer working conditions and higher pay,
which invariably led to advancements in transportation, basic infrastructure,
urbanization, and better economy.
 Page 2

What is the impact of economics

in the society?
Socioeconomic factors reveal some inequalities surrounding wealth,
education, or status. These background factors may play a role in a person's
life decisions, such as:

Families
There are strong correlations between socioeconomic status and family
structure, as well as other outcomes such as parenting practices and
childhood development. Single-parent households are more likely to be low-
income, and low-income households are more likely to suffer from domestic
violence and child neglect. These disparities also manifest in worse health
outcomes later in life.

Education
Children with lower socioeconomic status tend to enter school with lower
levels of reading and linguistic development, as well as lower social skills. In
later years, these deficiencies may manifest themselves in lower levels of
academic success and, ultimately, in lower incomes when they reach
adulthood.

Ethnic Minority Status

There are strong correlations between socioeconomic status and membership
in indigenous or other ethnic minorities, particularly those that have historically
suffered from discrimination. Membership of some ethnic minority groups may
correlate to higher levels of unemployment or substance abuse, as well as
poorer mental and physical health.

Violence
Although interpersonal violence can occur at any socioeconomic level, people
from lower socioeconomic backgrounds tend to have greater exposure to
violence, especially in their formative years. Exposure to violence can
negatively affect a person's academic and employment outcomes, and
domestic violence is also a major cause of homelessness.
 Page 3

How does Economics affect in

your life?

Economics plays a significant role in shaping our daily lives in various ways:

1. **Decision-Making**: Every day, we make choices about how to allocate

our limited resources, such as time and money. This involves budgeting and
understanding opportunity costs, which are core economic principles¹.

2. **Prices and Spending**: The prices of goods and services we buy are
influenced by supply and demand. For example, during peak travel seasons,
flight and hotel prices often increase due to higher demand¹.

3. **Employment and Income**: Economic conditions affect job availability and

wages. During economic growth, more jobs are created, and wages tend to
rise. Conversely, during a recession, job opportunities may decrease².

4. **Savings and Investments**: Decisions about saving and investing are

influenced by interest rates, inflation, and future financial needs. For instance,
contributing to a retirement fund now can ensure financial security later in life¹.

5. **Quality of Life**: Macroeconomic trends like inflation and economic

growth impact our living standards. For example, high inflation can erode
purchasing power, making it harder to afford basic necessities².

6. **Behavioral Economics**: Our behavior is often shaped by economic

incentives. For instance, sales and discounts encourage us to buy more, while
taxes on certain goods (like cigarettes) aim to reduce consumption¹.

Economics is deeply woven into our daily decision-making processes, helping

us understand how to best use our resources to maximize satisfaction and
well-being.

Page 4
References
[Link]

Economic Studies: History: Part 1 - RV University

What Is Social Economics, and How Does It Impact Society?

([Link])

How is economics applied in our everyday life? — OhMyEcon

[Link]
economics-in-our-daily-lives/

[Link]

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