Economics

Question 1

Definition of economics

Answer 1

is a social science that studies human choices and
decisions making and looks at how they
impact upon society and then tries to find
solutions to problems we all face.

Question 2

Aim of the study of economics

Answer 2

explain in a systematic way why economic events happen the way they do and attempts to predict economic events

Question 3

Social scientific method

Answer 3

use model building method to only represent the important aspects. the use of diagram or mathematical equation to show the relationship between two variables

Question 4

The 2 assumptions of the study of economics

Answer 4

1. Ceretis paribus (all else equal)

2. Rational economic decision making-always of self-interest (most likely to be in society’ best int.

Question 5

The 2 statements in economics

Answer 5

1. Positive (can be right or wrong and be tested) that is was or will be
2. Normative (depends on the value and can’t be tested) ought to be

Question 6

What is economics?

Answer 6

Economics is the study of choices leading to the best use of scarce(limited) resources in order to best satisfy unlimited needs and wants.

Question 7

What is an economy?

Answer 7

the description of a market place
where producers, consumers, government
enterprises, the financial markets and the
international sector interact to provide the goods
and services to satisfy society’s needs and wants.

Question 8

Microeconomics and examples

Answer 8

is the study os the individual households and firms

study of the prices of individual goods and services

Question 9

Macroeconomics and examples

Answer 9

is the study of the economy as a whole and the way it fluctuates and expands over time. it looks at the big picture of what is happening in the national and international economy