Unit I Introduction to microeconomics

This lesson offers an introduction to microeconomics, focusing on core concepts essential for understanding how economies function. It begins by defining economics, microeconomics, and macroeconomics, economy and its types, differentiating between positive and normative economics. The lesson then addresses economic problems and the central problems of an economy, such as what to produce, how to produce, and for whom to produce, linking these to the concept of opportunity cost. Finally, it explains the production possibility frontier (PPF), illustrating its meaning, characteristics, and how changes in the PPF reflect shifts in production capabilities and resource allocation.