+++
draft = false
semester = ['S1']
subjectcode = ['ET DCM1107']
unit = 'Unit 1'
notecategory = 'Live'
title = 'Unit 1'
toc = true
url = '/uninotes/s1/et-dcm1107/unit1/live/'
uniturl = '/uninotes/s1/et-dcm1107/unit1/'
+++

### ***April 5, 2026***

## Course Objectives

A) Develop analytical skills for interpreting consumer decision-making and market behaviour using economic tools.  
B) Examine cost and revenue structures of firms.

## Definition of Economics by various individuals

A) Wealth Definition by Adam Smith.  
B) Welfare Definition by Alfred Marshall.  
C) Scarcity Definition by Robbins.  
D) Growth Defintion by Samuelson.  

## Nature

### A) Economics as a Science

1. Positive (what is, based on data and logic)
2. Normative (what ought to be, opinions, judgements)

### B) Economics as an Art

1. Pure (what ought to be, ideals and goals)
2. Applied (real world, how to implement)

### A) Described Economics as a Science

1. Focuses on laws and cause-and-effect relationships (e.g Law of Demand).  
2. Models to predict economic outcomes.  
3. Data analysis, observation, hypothesis. 
4. Real-world evidence.  
5. Deductive and Inductive reasoning.

* Limitaion: Human behaviour involved.

## Methods

A) Inductive (specific -> general).  
B) Deductive (general -> specific).

### A) Inductive

1. Real-world observation, identify problem.
2. Collect data, analyze and find patterns.
3. Formulate and test generalisations.

### B) Deductive

1. Identify the general problem.
2. Assumptions, formulate hypothesis.
3. Verify using data.