Chapter 1: Basic Economics Concepts Flashcards
1
Q
What is ‘economics’?
A
Economics is a study of human behaviour, trying to explain or predict how individuals and societies decide on the use of scarce resources by referring to the postulate of constrained maximization (在局限條件下，個人會為自己爭取最大利益).
- Constraints: Limitations faced by people.
- Maximization: People will try to make the choices that maximize their own gains.
2
Q
What is ‘microeconomics’?
A
Microeconomics is a study of behaviour of individual economic units.
(e.g. How households / firms make consumption and production decisions).
3
Q
What is ‘macroeconomics’?
A
A study of the performance of the whole economy.
(e.g. Total consumption / production, employment in an economy)
4
Q
What is ‘positive statement’?
A
5
Q
A
