applied econ Flashcards
A greek word which means literally translates to household management
oikonomia
study of the ways individuals and societies allocate their limited resources to satisfy unlimited wants.
Economics
It uses scientific method to build theories that can help explain the behavior of groups, organizations, and individuals
Economics as social science
It is concerned with human behavior and the relationship between ends and scarce means which have alternatice uses.
Economics as social science
What are the aspects of economy
Science that is concerned with human behavior
Concerned with decisions we make and the consequence of those choices.
Concerned with man’s material happiness.
It involves application of economic theories and principles to a real-world situations which aim at predicting potential outcomes.
Economics as applied science
It follows a systematic procedure to solve issues and problems of the society.
Economics as applied science
uses scientific methods in its explanations, which consists of observing the reality, presenting questions, and problems to arrive at the formulation of theories and models.
Economics as applied science
What are the two main branches of economics
Microeconomics and Macroeconomics
It deals with the behavior of individual components as an economic agent such as household, consumer, worker, firm, and owner of production
Microeconomics
It deals with the behavior of economy as a whole with the view to understand the interaction between economic aggregates such as employment, inflation, and national income
Macroeconomics
These are the basic categories of inputs used to produce goods and services and are also called factors of production.
Economic Resources
It refers to all natural resources (gifts from nature) used in the production process.
Land
This refers to all physical and mental efforts that people make available for production.
Labor (Human Resources)
This refers to all investment goods used to produce goods and services
Capital
