Introduction

Every student probably has a vague idea about the subject or contents of economics. The newspapers, radio, television and internet regularly provide information on economic growth, the gold price, the interest rate, the rand-dollar exchange rate, the inflation rate, balance of payments, strikes, unemployment, poverty, and many other aspects of economics. These concepts should become a great deal clearer to you through your studies in economics.

Economics is also about everyday things. It is about the things that affect you, your family, your town, your country and your planet. All of us participate daily as consumers (i.e. buyers of goods and services) and often as employees and employers. The subject of economics is therefore neither unknown nor foreign to you.

Economics is also about how we make choices as individuals and as a society. And our lives are full of choices. Think of all the choices you have made today. Some of these choices are fun to make, such as deciding between having a hamburger or a pizza for lunch. Some are hard choices, such as between buying bread or milk since you do not have income to buy both.