ECONOMICS OF EDUCATION: WHAT IS ECONOMICS? WHAT IS ECONOMICS OF EDUCATION?

CHAPTER ONE

Economics & Economics of Education

1a i). Define the term economics in relation to Education.

Economics is a study of scarce resources and how best they can be produced and distributed to meet the given ends (i.e. goals, objectives etc). This involves the problem of choice ie. how best we can choose to produce, distribute and utilize commodities and services to meet certain objectives.

What is ECONOMICS?

Economics is concerned with two primary phenomena: i). Desires, as expressed by man and ii). Resources, as provided by nature (Rogers D.C. & Ruchlin H.S., 1971).Economic issues deals with a basic confrontation between these two opposing forces, i.e. desires and resources, or man and nature. This confrontation comes into being due to the fact that desires are infinite (unlimited)while resources are finite (limited).

Scarcity gives rise to choice, and choices involve trade-offs, i.e., desires and resources, or man and nature. This confrontation comes into being due to the fact that desires are infinite (unlimited) while resources are finite (limited).

Choices must be made regarding:

  1. What goods to produce;
  2. How much of each good to produce;
  3. How and;
  4. For whom.

Definitions:

  1. Economics is a study of scarce resources and how best they can be produced and distributed to meet the given ends (i.e. goals, objectives etc).
  2. Economics is the study and exercise of choice. It is concerned with the manner in which wants and desires of people are converted into a limited number of material good and services through the judicious use of scarce productive resources (Todaro, 1982).
  3. Economics is the study of man ‘s attempt to satisfy as many wants as possible within the existing stock of resources. This is achieved by using the stock of available resources as efficiently as possible so as to derive the greatest benefit from them (ie. deriving maximum output from minimum input)
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