1. 1 Introduction

3. Learning outcomes • By the end of this session students will be able to: • understand the scope of recreation, leisure and tourism and their interrelationship • explain the basic economic concerns of scarcity, choice and opportunity costs • outline the allocation of resources in different economic systems • explain the methodology of economics • understand the use of models in economics • understand the use of economics to analyse issues in recreation, leisure and tourism • access sources of information

4. Definition and scope of recreation, leisure and tourism • Leisure = discretionary time • Recreation = pursuits undertaken in leisure time • Tourism = visiting for at least one night for leisure and holiday, business and professional or other tourism purposes

5. Definition, scope and methodology of economics 1 • The nature of economics • Resources and wants • Scarcity and choice • Opportunity cost • Allocative mechanisms • Macroeconomics and microeconomics • Marginal analysis

6. Production Possibility Frontier

7. Allocative Mechanism

8. The McDonald’s Golden Arches in Beijing, China • An early example of private sector activity in China • Contrast with state-run enterprises

9. Definition, scope and methodology of economics 2 • The methodology of economics • The ‘science’ of social science • The ‘social’ of social science • Economic models

10. Scientific testing oftheories

11. The economics of recreation, leisure and tourism • Scarcity and choice • Demand, supply and markets • Work vs. Leisure • Government intervention • Economic impacts • Growth and development • Externalities and the environment

12. Review of key terms • Leisure • discretionary time. • Recreation • pursuits undertaken in leisure time. • Tourism • visiting for at least one night for leisure and holiday, business and professional or other tourism purposes. • Economic problem • scarcity and choice. • Leisure and tourism sector organizations • organizations producing goods and services for use in leisure time, and organizations seeking to influence the use of leisure time.

13. Review of key terms • Opportunity cost • the alternatives or other opportunities that have to be foregone to achieve a particular thing. • Free market economy • resources allocated through price system. • Centrally planned economy • resources allocated by planning officials. • Mixed economy • resources allocated through free market and planning authorities. • Microeconomics • study of household and firm’s behaviour

14. Review of key terms • Macroeconomics • study of whole economy. • Marginal analysis • study of effects of one extra unit. • Positive statement • based on fact. • Normative statement • based on opinion. • Ceteris paribus • other things remaining unchanged

15. 1 Introduction The End