Basic Definition Flashcards
1
Q
Define Economics
A
studies the production, distribution and consumption of goods and services
2
Q
Define Microeconomics
A
study of how individuals/firms/organizations make decisions to pursue their own interests and how they interact
3
Q
Define Market Economy
A
an economy in which decisions about production and consumption are made by individual producers and consumers
- who will make decisions to pursue their own interests
4
Q
Explain Invisible Hand
A
An individuals/ people/ organization pursuit of self-interest
( earn more money, more profit, make oneself happy, without individual intending it to there’s a good result for society as a whole)
5
Q
What is Market Failure
A
when the government has to intervene to help society
