1.1: Definition of Economics Flashcards
1
Q
Scarcity
A
Our inability to satisfy all our wants (demand exceeds supply)
2
Q
Limitations in economics
A
Time, money, resources (nature, human labour, ingenuity, etc)
3
Q
Incentives
A
A reward that encourages an action, or a penalty that discourages one. Eg. prices
4
Q
Economics
A
A social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices
5
Q
Microeconomics
A
The study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments.
6
Q
Macroeconomics
A
The study of the performance of the national economy and the global economy.
