CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Economics is a social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants. Economics is concerned with human behavior such as how people earn their living and make a choice between alternatives to satisfy their wants. It focuses on the study of firms and the government whose activities are geared to the production of goods and services for the satisfaction of human want since economics is concerned with human behavior. So economics is a social science, and like any science subject, the reasoning procedure in economics is methodological, its analysis is systematic, and the validity of its various theories.Economic education is vital to the future health of our nation’s economy. It gives our students the building blocks for a successful financial future. It empowers students by giving them the knowledge and tools to improve theirwell being. Economists recognize that developing basic economic and financial knowledge is an important goal for a democratic society that relies heavily on informed citizens and personal economic decision-making. When households are capable of building wealth, they are also capable of building more economically stable neighborhoods and communities.The study of Economics plays an important role throughout our lives. Today, economic issues are drawing the attention of every citizen directly or indirectly. It is therefore, appropriate to include Economics as a distinct area of study in the system of school learning particularly because for most of the students it will be a terminal stage. At the same time it fits within the frame of schooling wherein it is advocated that education should be relevant to the needs of students. Economics, in comparison to other social science subjects has an edge in providing certain job opportunities to the learners and open the gates for various occupations, if they pursue the study of the subject further. Another reason why Economics teaching is necessary is that there are many changes occurring in our economy like privatization, liberalization and the outside forces are influencing it like globalization etc. This makes a strong case for imparting economic education to all the students so that they may understand these new concepts and issues are related with economy. Further, the learning of Economics helps the student to participate effectively in economic and social affairs and to take intelligent decisions in day-to-day life. At the same time the democratic system which we have adopted will succeed only when we win the race on economic fronts. In the interests of our own survival and of the nation, there is no education more important than that which helps us to understand our economic problems and reflect on them. From all these angles, Economics teaching – learning become cogent and highly significant in modern times. Economics at the secondary school stage has been developed with some difference, generally not found in the formal education system at this stage. The whole idea behind arranging the units in the present form is to make Economics teaching more useful, nearer to the environment of the learner and to build economic literacy.