 Bismillahir Rahmanir Rahim. It's my pleasure to share my knowledge and expertise for your help of the students. Today we are going to start our course of microeconomic analysis and it is our first lecture and the first lecture as you know it is always starts from the introductory part of that subject. So today we are going to introduce what is economics. Economics as we see that is the combination of the two parts, eco and nomics. These eco and nomics they are basically derived from the two Greek words one is the eco but with the different spelling of O I K O U and other is the nomos. This eco was the concept that was given by the Aristotle and that concept was the household or the house that was to the eco and nomos mean the rules the laws the norms that were prevalent that time. So when we combine these two things it becomes the house and the rules and the laws. So overall it means all the rules and the norms by which a household is being management. So in broader aspect this eco became not only the house it was broadened to society or to the other parts or the economy. So over the time this household management it took different shape and so now what it became it becomes a social science or a branch of social science that particularly deals with the decision of the coordination and what is the coordination? Actually it is the coordination of the two things what are the wants and the desires of the human being and what decision they are going to make to fulfill their wants and the desire from the available resources. So for the attainment of this thing now they have to deal with the mainly three aspects of their life and the three decisions that that will be the production of the goods there will be the distribution of the goods and the resources and the consumption of the resources. Over the time these all three decision they depend upon the utilization of resources and these resources are mostly scarce for which society individuals and institutions has to decide and prioritize. Over the time definition of economics has evolved. In 1776 Adam Smith the father of economics he gave its first definition to the economics. After a century in 1890 Alfred Marshall broadened the concept of the economics with the introduction of the concept of the trading and production to this and then Lionel Robbins he provided a new shape to this in 1932 when he noted the concept of scarcity in the definition of economics and at last the latest definition that is available today with us that is given by the Paul Samuelson. Now we describe these definitions one by one the first definition given by Adam Smith it gave that in nomads is an inquiry into the nature and causes of the wealth of nation. At the time of the Adam Smith mostly societies they were working for the accumulation of the wealth and these wealth was accumulated mostly in the form of the tariff so any economy or the society will be rich who will collect more gold but the concept of the trading was less and the production was less and the exchange of goods was less. So that time Adam Smith gave this definition to economics and after a century Alfred Marshall he said that economics is the study of mankind and this study of mankind is related to the ordinary business of life it examines that part of the individual and social action which is mostly connected with attainment and use of material requisites of the well-being a very unique and comprehensive definition in the sense that it includes not only the individual rather the social action of the society and this social action of the society and individual it is mostly related to the attainment of the sources for the material well-being so here the start of the welfare economics came into being. The third definition that was given by the Lionel Robbins it is that the economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses so this definition though it is in the small number of the words but it encompasses a very important three aspects that it is human behavior that human behavior of the people when they are dealing with the two things either ends and the scarce means and the human being they have to keep balance throughout their life between these aspects of their wants and desire and or the other thing the resources that they are having in their hand and at the same time one important thing that he noticed that were the alternative uses of the resources that the resources that are only scarce rather they have the alternative uses which provides them the switching property between various ends and scarcity of science was noted by this the last definition given by the Paul Samuelson is that economics is a social science concerned chiefly with the way society chooses to imply its resources which have alternative uses to produce goods and services for present and future consumption. Society was included not only the mankind and the human being and the resources that were noted before now they were mentioned that these resources they will be utilized for various alternative uses to produce goods and services and here when we say present and the future consumption so this means that the person who is earning for himself in the form of income will also meet his today's resources, his today's home expenses, his wife's children's home and after that that future consumption, that future consumption can be of that too, it can be of his family, and in that respect if he is saving for his next generations then this concept of future consumption was provided by Paul Samuelson and when we talk about economics then it is an economic subject and what he has to deal with then he will become a society or a system which we call economy. So what we say economy, economy can be a geographical area or a market on someone's but overall economy is at the same time geographical area, it is a political boundary, we call it an economic limit of any country and economy it can be a system in which people earn their daily bread through different resources and efforts and at the same time economy can be a system in which economy and people, all the systems or together own their resources, then they use those resources to produce, they send that production to people and through that they earn their daily bread and then they consume their own, one person who is selling something dirty, when the other person sells it and buys it, then that exchange of goods which is earning for themselves is distributing it and the other person is shifting it with it. That is why in economy production, consumption and distribution, investment, all these effects will be made by the economy and when we talk about all these things then it means to run all these systems, the rules which will be necessary at that time, the names, the controlling system, the legislation, we will call all of that an economy. Now when we talk about economy, the economy of today is not always like this, so there are the various types of economy, so what are those? So when we say there are the list that first of all we had an economy shape, that was market economy, then there was a command economy, mixed economy, traditional economy and there are various characteristics of each system, if we say in broader form, then the market economy will be the one in which market forces, economic agent, are interplayed and decision making, when we say command economy, it means that it is going under a command or under the central system, traditional in which the system was very weak, transitional which is shifting from one system to the other from the market, which we call command economy. And now we have a new concept that is called the green economy which in the current situation is the economy that will use resources, but in this form it will use for the coming generations, we will use it in a sustainable form and don't over-use the resources so that they can be used for the coming generations as well, so that will be called the green economy.