ECONOMICS Flashcards
The origin of the word Economics.
Oikos - household
Nomos - management
Oikonomos means?
household management
A social science concerned with the production, distribution, and consumption of goods and services.
Economics
Economics studies how individuals, businesses, governments, and nations make _____ about how to allocate resources.
choices
To understand the society, economics seeks to analyze _____ made by the society and its members, particularly concerning on their behavior and decision making.
transactions
Understanding of economics develops individuals to be ____ voters.
wise
With this in mind, voters have an ____ choice in selecting leaders based on their economic, social, and political platform and not just based on their appearances or popularity.
informed
Economics seeks to explain the ______ and _____ of different countries.
internal operation
trade policies
2 Branches of Economics
Microeconomics
Macroeconomics
It is the analysis of economics in the small. It looks at individuals and firms; and the conditions under which they make buying, consumption and production decisions.
Microeconomics
Microeconomics focuses on how individual consumers and firms make decisions, these individual decision making units can be:
a single person, a household, a business/organization, or a government agency.
It studies an overall economy on both a national and international level, using highly aggregated economic data and variables to model the economy.
Macroeconomics
Economics is the study of the ____ economy in terms of the total amount of goods and services produced, total income earned, level of employment of productive resources, and general behavior of prices.
entire
The Scientific Methods of Economics
- Data Gathering
- Economic Analysis
- Economic Conclusion
Economic knowledge is mostly obtained from observation of economic events.
- Data Gathering
Data is obtained through _____ and _____ of past performances which are organized in a way that can be easily understand.
historical records and events interviews
Data gathered is useless if not analyzed.
- Economic Analysis
After laying down all assumption, one proceeds to reasoning in order to generate conclusion.
- Economic Conclusion
After laying down all assumption, one proceeds to reasoning in order to generate conclusion.
- Economic Conclusion
____ can either be verbal or with the statistics.
Reasoning
Monetary measure of the market value of all the final goods and services produced and sold in a specific time period by countries.
- GDP – Gross Domestic Product
Value of all products and services produced by the citizens of a country both domestically, and internationally minus income earned by foreign residents.
- GNP – Gross National Product
Means if you chose one activity you are giving up the opportunity to do a different option.
- Opportunity Cost
Tension between infinite wants and finite resources.
- Scarcity
