1- الفصل الأول - الجزء الأول - علم الاقتصاد - د. محمد الخطيب

In the name of God, the Most Gracious, the Most Merciful. Welcome to the students of the School of Commerce, the University of Alexandria. Dr. Mohamed Al-Khatib is with you. I will be with you for a long time, God willing, in the subject of the principles of partial economy. Today we will talk, God willing, about the first chapter. The first chapter is called the science of economy, and this is the first lecture. This chapter talks about the purpose of the science of economy. What are the issues that the science of economy studies? And he also talks about his definitions and his relationship with other sciences.

The first thing we will talk about in this chapter is the issues that the economy science will take care of The economy science will work to solve problems and to solve issues What are these issues? In fact, they are many problems and many issues that are discussed In the book, there are nine issues for example The first issue is the issue of the types of goods and services What are the types of goods and services that we will produce? And how will its quality be? We can solve the issue of the types of goods and services through three questions

What is the purpose of production? Why do I produce? What are the factors that determine the quality of goods and services? What can make a country produce goods of high quality or large quantities and another country produce the same goods of lower quality or small quantity? What are the factors that lead to the appearance of new goods? What can make new goods appear? The second case that we study is the prices of goods and services

We also analyze it through a group of questions, how prices are determined. This question is in his mind and comes to the mind of many people, what makes the price of the commodity determine? We can look at the third thing, why prices rise after the commodity? After I think about what makes the price determine, on what basis does this price depend? I want to know if the price increases, what makes the price increase?

Why do governments interfere to determine the prices of some goods? The prices of goods are supposed to be left to the market forces, and as we will know later, the offer and demand But the government sometimes intervenes to achieve social goals, we will talk about it later, God willing, in the seventh chapter, about governmental interventions to determine prices, so we want to know why the government intervenes

By the way, this question is not required from you to know its answers because its answers are variable from one country to another and in the same country from one time to another I mean, I can find an answer in one country and another country has a different answer I mean, the answers vary depending on the circumstances of the country For example, the goal of production is if I am a country that is not in a state of war, a country that is in peace with all the surrounding countries, I have no problems, the goal of production is to produce goods to increase the quality of my people

But if I am in a war situation, the goal of production will be to be able to recover my dignity, my sovereignty, and the land that I use. The goal of production differs from one country to another, so you do not need an answer to all these questions, you just need to know the questions and think about them.

The third case that I am interested in in the study of economics is the acquisition of the individual's income. The acquisition of the individual's income is where does the income come from? So we want to know what are the sources of the individual's income? Where does your income come from? And we want to know whether the individual's production skills are employed, such as employing the best? I mean, do you have skills? Do you use them as examples? I may have very great skills. For example, I am a very, very, very big designer. I can design better, for example, instead of

for example, men's evening but in reality, I work in a place that is modest and I fix the clothes for people and I keep the clothes in the first hour so I work by the way but this is not the best employment my skills do not match this job

And will the individual get the largest possible income? Of course, if you work your skills in an example, you will definitely get the best income These are the questions related to each other, and as I told you, you are not required to answer them The fourth issue is the way to distribute the individual income I am now in debt income, how will I distribute it? I will distribute it between myself and myself, I spend my money either as a waste or as a deposit

What is the distribution of the income of the consumer? I am a consumer, I choose to eat from the income to consume and spend. How will I distribute it? Will I spend most of the money on food? Or most of the money I spend on groceries? Or most of the money I spend on transportation? Or most of the money I spend on learning and improving my skills? How will I distribute it? Of course, this question is difficult and it differs from one to the other. In economics, many theories will help you. If you are confused, will you spend or spend? Consumption or income? We will make theories for you to help you make a better decision.

The fifth case is the prices of the services of production factors. What are these production factors? The land, natural resources, labor, human resources, capital, which are the machines and equipment that I use in production, or the organization, the man of the works or the owner of the project who takes the risk and starts producing the project. What are the production factors?

How to determine its prices? For example, the price or salary of the worker in Egypt, is it low or high? The salary of the worker in China, the salary of the worker in America, how are the prices or salaries of the workers determined in this country or this country?

Why do prices rise after production factors? Why do you hear that in the US, the wage of the worker is very high, and in another country, such as Egypt, Sudan, or Jordan, you find that the income of the same worker at the same time of work takes a lower wage? Why does it change and prices rise in production factors in the other countries? Then, the level of individual and national income, income at the state level. What are the factors that determine the national income of the state?

What are the factors that determine the income of the individual? 7. Inflation rates and the word inflation simply means the increase in prices Of course, we will know in the second term that inflation has many conditions and definitions And the subject of studying inflation is not a simple subject You will like the chapter of inflation very much because now the whole world is entering an inflation wave And prices will start to increase in the whole world, not only in certain countries, but in the whole world So you will want to know what makes prices increase and you will take the second term eventually

So the word inflation means the increase in prices, and of course it has conditions I just want to say this word to simplify the second word to know more details We want to know here what is the reason for the appearance of the rise in prices What is the inflation rate and how it will be measured, i.e. inflation, how to measure the increase in prices What are the factors that lead to the change in the level of price work? What are the things that can make prices change? Eight, economic policies, and simple politics are something that the state does

to improve the prosperity of its people, to increase the level of prosperity. And the policies are many types, so we want to know what the word economic policy means, what are the types of economic policies that the state can act on, what is the goal of economic policies, what is the cost of the projects that the state does, the state that makes the project, what is its cost?

9- The population, and this issue is one of the most serious issues, and the opinion of the population was different over the centuries. There were times when people were against the population increase and said that this is a bad thing, and there were other times when people heard the population increase and said that these populations are sources, and there are countries against the population increase and there are countries with it. Of course, the answer to this issue of population is different from the other countries, that is, no one can tell you that the population increase is true.

or the increase in population is wrong because it differs from one country to another. In a country like America, which has resources and lands and the population is not large, so it is normal to call for an increase in population. But in a country like China, the population is more than a billion and a quarter, so there is a very high pressure on resources, so it is normal to say that we will stop the increase in population a little. So we want to understand how the increase in population is measured in the state. We want to know what are the reasons for the increase in population, what can make the population increase?

Is the Canadian market increase due to the decline or the progress? These are the issues that economics is trying to address. Now we will talk about the nature of economics, which is that economics belongs to any type of science. First, we want to talk about different types of science, so we will know that we have

three major types of science the first is natural science which studies the appearance of the environment in humans like physics and chemistry we can say like geology studies the appearance of the environment in humans studies the earth's planet studies the earth's clouds these are natural sciences

There is a type of science called social science, and social science teaches human behavior, such as psychology, which teaches human behavior and thinks, social science, which teaches human behavior and deals with the brother of man, criminal science, which teaches human behavior and commits crimes, and economics, which teaches human behavior and produces, consumes, sells, or buys, as we will know later.

I have social sciences, which teaches the behavior of the person himself, which includes economics, and there is something called basic science Basic science is like mathematics and mathematics, and this is the same, science was developed to serve other sciences Basic science is like mathematics, mathematics brings us theories and mathematics equations that we use in other sciences, whether it is follow-up

or social sciences So, now I have three types of sciences: Natural sciences, which study the natural phenomena Social sciences, which study the behavior of humans And basic sciences such as mathematics and mathematics Economic science belongs to the group of social sciences

Because like all other social sciences, they teach human behavior. And keep in mind, everyone, there is a relationship between the economy science, which is a social science, and the basic science. Because in the economy science, we rely on mathematics and mathematics. In the economy science, it is an independent science. And there is a relationship between the economy science as a science of social science and natural science. For example, we have a relationship between us and the science of geology.

Because geology studies the layers of the earth, and it is what tells me that there is oil here. So, as an economist, I determine what costs are extracted and what prices are sold, and whether it is possible to produce and sell or not. So, it is written here, notice that economics belongs to the group of social sciences, because economics, like all social sciences, studies human behavior.

The sections of economics, we will discover that we have two sections of economics The first thing is called the real economy Real economy is an economy that is specific to the real report It studies the reality as it is a being It is written here: specific to studying the real report It studies the reality related to its topic study It studies the reality as it is without taking a perspective in consideration I look at the thing and study it, it is a topic, and therefore it studies the reality

I can test it as long as I talk about reality, I can test it, I mean I can look, if I said, for example, poverty increased in Libya, I say this is a real economy, this is a real thing, I say that I see that poverty increased in Libya, so I can test this sentence, I can go to Libya and measure the level of poverty, if the sentence is right, if it is not, the sentence is wrong, so the real thing, I am talking about something that is in reality, I can test it and I can confirm the health of the real economy.

and he is studying what is a creature, he is studying something that is already there, not something in his brain but there is another one called the ideal economy

This ideal economy studies what should be, and what is supposed to be. You will find it written here, especially in the study of ideal reports, it studies what is supposed to be. It does not study reality, it does not look at reality at all, but it studies the reality of moral issues. What does it mean? The poverty in Libya is supposed to be not greater than 1%. It studies the ideal, moral thing that is supposed to be.

He studies what must be and not what is the object The example studies what is supposed to be present It can be tested because I can't wait for something to be tested These are ideas in the brain, I hope poverty does not exceed 1% This is a wish, this is a goal, so it is not present in front of it because it is needed Introduction of economics

We will find that economics is related to other sciences and economics is exposed to many aspects, we said that there are nine issues that economics is trying to expose to, so we are talking about a great science that has existed for a long time, a long history, and there are many theories, so it is natural that you will never find it to be one definition.

Here it is written: Because of the diversity of aspects that economics science is exposed to, and because it is linked to many other sciences, i.e. it has many aspects and is also related to many sciences, there is no one definition that is agreed upon between economists and economic science definitions. Of course, the definitions have evolved and changed with the change of the problems that economics science solves. The more problems change, the more our theories change, the more our self-knowledge changes.

Let's look at a group of definitions, the definition of Adam Smith, which is said to be the father of economics. A man said that economics is the science that teaches the causes of the wealth of nations. The wealth of nations, which is the wealth of the state as a whole, and also teaches how to increase it. Adam Smith talked about the wealth that comes from the state and talked about how to increase it, but he did not talk about its distribution. There is another one called Marshall. Marshall said that economics is the science that teaches the human in the works of his ordinary life.

He is studying the human cycle in his normal life. What is your goal in your normal life? He will look at how to get the human on his income. He looks for how the human gets his income and how to use this income. How can you use this income? The third definition is the definition of Friedman.

Friedman was one of the people who loved economics and won the Nobel Prize in economics He said that science must look for ways to enable society to solve economic problems Friedman focused on problems, that he had an economic problem, so this science was developed to find ways to solve problems Are there other important experts?

The next definition is the most important one, the definition of Robbins, because it is based on the second chapter. The second chapter is based on Robbins definition, and Robbins said that economics is the science that studies human behavior. In his continuous effort, let's be careful, a person constantly strives to imitate his needs. You are striving to imitate your needs. You have multiple needs. You want to eat, drink, and bring clothes, and you want to work, and you want to bring a car, and you want to work, and you want to bring a car, and you want to work, and you want to bring a car, and you want to work, and you want to bring a car, and you want to work, and you want to work, and you want to bring a car, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work, and you want to work,

And these multiple needs will not stop The problem is that you will not sell it, that is, you will buy all the goods for yourself using your limited capabilities Your capabilities are always limited But someone says to us that my capabilities are not limited, by God, we are very rich Yes, if your capabilities are not limited and you are very rich You will find your needs and your needs and your hopes are great, so you will always find your needs

more than the resources you have, so always in front of your eyes, you will always be a basis and see that your capabilities are limited. The last definition we will talk about is the definition of Sam Wilson, and he said that economics is a study of the quality that individuals and society choose, the way individuals and society choose, the way resources are used. Sam Wilson, then, focused heavily on production, on the way the resources are used.

because in the end, what will we do? because we will have goods and services so what will we do with these goods? we will distribute them over time what does it mean? we will distribute them over time now I have oil in the bottom of the earth I will sell it all now and the money will be given to the people in the country so our children will come who will not find oil and money

Or let the oil be used by our children and not used at all, so I will not benefit at all, but my children have something to sell Or I will divide it in a way that will produce the goods and distribute it over time, and the distribution of that product is now and in the future for the members of the society The relationship between economics and other sciences The relationship between economics and psychology Of course, economics is one of the social sciences that studies the behavior of man, and psychology is also one of the social sciences that studies the behavior of man So, they study the same phenomenon, which is the behavior of man

Both of them are the same, the psychology of science and the economics of economics are the same The relationship between economics and history Science of economics has a relationship with history Because we have to go back to the historical events to look for the economic events that happened

and we try to see the crisis that happened before that and we try to see what happened to it, what are its causes, how was it treated, was the treatment that happened before that useful? If the crisis decided to do the old treatment, or do I need to develop the treatment of the crisis that happened? You will find a big link here, where we ask in the events of history, an economic side, I may study it, analyze it, understand it, and use it if it is right, if this crisis has repeated

For example, in 1928, there was a great famine for almost 4 years. The world was in a very high unemployment rate, and the results were very low. Famines, recession, and many other difficulties. How was it treated? We want to remember the crisis of 1928.

and see its causes and see the causes of its treatment so that if it is repeated again, we can treat it easily. Therefore, the connection between economics and history, of course, it is very clear that the connections are very important, very important, we study the historical events that appeared before, a science called the economic history, the rest of science, economics and politics,

Of course, they are very important by the way, because the economy affects politics And politics affects the economy There is a strong connection between them and it is difficult to put a border between them Sometimes you elect a president or you elect the parliament or you elect your government This is politics, they make economic decisions, so politics affects the economy And sometimes because of the resources in a certain country, which is the economy, another country comes to dominate it and make a war, war and occupation is politics

So, the idea is that there is a great connection between economics and politics. As a result of this connection, the science of political economy emerged. So, a new science emerged as a result of the connection between economics and politics, which is called political economy. After that, we want to talk about the relationship between economics and basic sciences. The basic sciences are sports and sports.

so economics depends on mathematics and mathematics, of course we depend on them because they have very strong mathematical formulas that help us understand the economic problems we have and the relationship between economics and mathematics, when you put economics with mathematics, a new science called mathematics economics will appear, but with economics with mathematics, a mathematical economy science will appear

and economics with mathematics with mathematics, his science is very important, very important, his name is economics, and this is one of the best, meaning one of the best and most important and latest branches of economics and one of the very important branches and most recent researches, most of the master's and doctoral researches

Depends on parts or methods of economics Of course not all of them because I am doing a scientific research or I want to study a specific phenomenon According to the phenomenon in front of me, I choose the method that I will use or the science that will help me But normally economics is one of the most important sciences that you can imagine within the field of economics Because of course there is something called economics

and in branches, for example, we take a part of a substance, and another part of a whole substance, and there is something called the state economy, and there is something called the good economy, and this is one of the most important branches of the economy. The economic theory, what is the economic theory? We make theories that try to analyze the reality, or interpret it, or understand it, or deal with it and control it. So, the theory is logical analysis. I make logical analysis. My goal is to connect to

Results from the relationship between the variables I have variables, I have the price of the item I have the total that the buyer will buy I want to know the relationship between them And I want to explain the results And I want to predict it in the future I want to know if the price of the item increases The buyer will decide to buy more or less We discovered that he buys less Why does the buyer buy less? We want to explain this result And we want to predict in the future If tomorrow the price of the item is less Will the buyer buy more or less?

The components of economic theory, any theory has a set of components, which are three. The first thing is definitions. Before I give you a theory, I must tell you definitions. When I tell you that, for example, increasing the percentage of the national product leads to increasing inflation. You did not understand the word I said because I did not tell you what it is. Before I tell you a theory, I must tell you what the percentage of the national product means, I will tell you what inflation means, and then I will tell you the theory of the two.

By the way, what I said is not for you, and you will say it again, but I do not understand you. I am telling you a theory without definitions that you will not be able to understand well. So, I want to know the purpose of all the terms used in the theory in a precise and clear way.

Another thing is the main assumptions. There is a set of assumptions. I mean, I'm telling you, let's study to see what the consumer will buy. But assuming that the consumer's income will not change. Assuming that the consumer's taste will not change. Assuming that the consumer will buy a local commodity, not a imported one. These are a set of elements that I put as a simple example of reality. For example, when studying the customer's demand, we assume that the consumer's income will not change. This is an assumption.

Thirdly, the interpretation of the theory itself is the logic of the theory. The objective of the economic theory is definitions and assumptions, so the third objective is the essence of the theory.

I'm telling you the same theory, for example, in something called the demand theory, and we will know it later, by the will of God, in the fourth chapter, the explanation is that the increase in the price of the commodity leads to the decrease in the amount required from it. This is a theory, I reached it, how did I reach it? By first putting definitions, meaning price, meaning the required amount, and then assumptions, assumptions that the consumer's income did not change, assumptions that the customers did not change, and then the conclusion of the theory.

So, we want to know that any theory consists of three things: First, you must put the definition, then the assumptions, and then you can conclude the theory. After you conclude the theory, you must do a fourth test. You must test it. If I told you that if the meat price increases,

The consumers will buy less meat If I assume that this is a theory I can't take it and apply it to people I have to test it And if I tested it, there are three possibilities I have three possibilities The first possibility is when I test it, I go down to the site to see if this theory is really happening or not The theory is able to be used

The second possibility is to prove the theory wrong, so throw it and don't use it or modify it See what was wrong with it and modify it and test it again The third possibility is the lack of complete data I made a theory, but I don't know how to test it, there is no data in front of me You can prove to me whether this theory is right or wrong And here I will pay the judgment on the theory, I will not judge it now Economic sector, I have something called the partial economy, and this is what we take, and let's not throw it away Partial economy

He specializes in studying the individual economic units of the economy The partial economy will study the individual units, and of course, each individual unit will study the individual consumer, the individual producer, the seller, the buyer He will study the price of goods, the quantity of goods, the number of workers in the factory, I have a factory that has 100 workers, why not 101? Why did not you work 99?

He will study how to determine the prices of goods, this is the partial economy, all small and simple partial things For example, he studies how to determine the price of a certain commodity Why two items of the quantity of a certain commodity? I am talking about a commodity, its price, its quantity, and one commodity And it is clear from his name that he is a partial economy, he cares about studying partial problems that do not reflect others

Second, partial problems, I want to know how much the price of the Mercedes car will be? How much will the Mercedes car be? This is a partial problem If the price of the Mercedes car increases in any country, most people will not be affected and will not be annoyed that they do not buy most cars So these are partial problems that I found to reflect on others The goal of the partial economy is to improve profitability, who's profitability? The individual level Improving the profitability of the consumer alone Or the productivity of the producer alone Or the profitability of the worker alone

So, the partial economy simply studies parts, such as the price of a product, the quantity of a product, the number of workers in a factory, etc. It studies simple things without reflecting on others. But there is another thing called the total economy. The total economy studies things at the level of a state as a whole. It will study the same changes, by the way, it will also study prices, but not the price of a product, but the price of all goods and services.

He will also study the same variables, he will study the quantities, but not the quantities produced from the Mercedes-Benz car, he will study all the quantities produced from all goods and services in the state, he will study the number of workers, but not the number of workers in the factory, he will study the employment, the number of workers in all factories together, so the entire economy is specialized in studying the individual economic unity behavior in a common society, a common society means together in the form of the entire national economy,

It will study changes, it will study changes at the state level as a whole, such as the national income, the national income, all the money collected at the state level, the national investment, all the tools and equipment that we have added to the factory at the state level

plus, you will study other things, you will study the increase in prices in general, which we call inflation, you will study employment, the people who work in all factories, you will study unemployment, all these things you will study the science of the economy, you must notice the difference between the two, that the partial economy studies simple things, small, the price of food, the quantity of food, but the economy studies things at the state level as a whole,

and of course, it will lead to total problems that will be the opposite of others. If there is an increase in the average of the amount of inflation, this means that the prices of most of the goods like this will be reduced and the goal is to improve profitability at the level of the society. Partial economy studies to improve the level of individual profitability, but the whole study studies the whole state, so the goal is to improve profitability at the level of the state as a whole. The methods of research in economics, and this is the last part of the chapter, we have two methods, the method of analysis,

and we will see the second approach, which is called stability. The approach of stability starts from the brain, it starts from logical analysis. I present a problem, I want to know its solution, I know from where? From my brain. I sit like this, I think about the problem, and I try to see its dimensions, and I try to find a solution. So, the analysis of my theoretical research, my theoretical research because I did not go down to reality, I thought about myself.

and it starts from the private asset, meaning I put a public position and then I start applying it to the commodity, meaning, for example, in general, of course, any commodity will increase its price

the quantity of the consumer will buy it, you will say that this is a general seat, then someone will apply it, and you will know what will happen to the meat, and you will say that of course I know, I will apply this seat to the meat, to something special in the meat, so what do I say? If the price of the meat is more, the consumer will want to buy less, and I will say that if you know how to apply it to the market, I will say that yes, I know very easily, if the price of the market is more, I will buy a less quantity of the market, so here is the theoretical, logical,

It starts from my brain, so I put a general table and start applying it to the previous cases, which are the special cases, so it starts from the private to the private. The researcher starts from a set of basic assumptions, he puts a set of assumptions as a first step, first he puts assumptions like this, and then he makes a logical analysis in his brain to reach conclusions and suggestions. But there is another called the "readiness" method. The word "readiness" can be said to come from reading, it comes from looking

and see what is the reality, so he starts the way of realization, he starts from the reality, not from my brain or the practical studies, practical means he starts from the reality and he starts from the general knowledge, he looks at the reality, he looks at the cars and see if the price increases, the buyer will buy more or not and look at it especially in cars, he says that if the price of a car is expensive, it will be more expensive, surely the buyer will buy less cars

and start this relationship, which is specific to cars, and say, "God, why do I go to cars and not to anything else?" So, I will start from the specific to the wrong. How does it come? Through the research, a group of real statistical data is collected from the study site, and through the analysis of the data, the results are extracted. It starts from reality, and be careful, we have two methods, the first is the theory method,

and the reading starts from the real data, starts from the street, starts from the numbers that came out of reality, so it is a practical method. Thank you very much, and now the first part is over. There is a video that we will also solve together, a set of questions. Thank you very much.