Introduction To Economics Flashcards
What is economics and the economic fundamental problem?
Economics is the study of how individuals and societies choose to use scarce resources to fulfill or satisfy their needs and unlimited wants and the economic fundamental problem is Scarcity of resources
What is a choice and opportunity cost?
A choice is an act choosing between two alternatives and opportunity cost is the next best alternative forgone
When did economics originate and what is oi konomia
Economics originated in the 18th century with the publication of Adam Smith the wealth of nations
Oi konomia is a Greek word tht means housekeeping
How is social science related with economics
Human behavior which concerns with peoples activities in production of goods and services, human problems peoples behavior to solve the basic economic problems, human organization system the ways people employ to seek solutions to the economic problem
How is science related with economics
Economic language it has its own language and Termanology, scientific methodology it undertakes research and development , logical reasoning which is based on rational behavior
What are the definitions of economics by economists
Adam Smith – defined economics is the nature and causes of the wealth and Nations
John Maynard keynes- defined economics as a method of thinking which helps it’s prossessor to draw correct conclusions
Lionel Charles Robbins – defined economics as a science that studies human behavior as a relationship between ends and scarce means
Alfred Marshall – defined economics is the study of mankind in the ordinary business of life
Paul.a.Samuelson – defined economics is the study of how people and society choose to employ scars productive resources
Who is the father of economics
Adam Smith
What is scarcity and how is it different from shortage
Scarcity is lack of resources and shortage is when the demand of resources is less than the supply of resources
Why does scarcity force people to make choices
It is because there aren’t enough resources and there are unlimited wants
Adam smith- born , died, school,notable ideas
Adam Smith was born on 16 June 1723
he died on 17 July 1770 and was 67yrs old
he went to classical economics
and notable ideas are :
classical economics
the invisible hand
and more than free-market
John Maynard keynes, born, died, school, contribution
John Maynard was born on 5 June 1883,
died 21st April 1946 ,62 YRS old
he went to keynesian economics
and some of the contributions are
macro economics
keynesian economics
Lionel Charles Robbins, Born, died, school, institution
He was born on 22 November 1898
died on 15 May 1984
institution: London school of economics
school: NEO classical
Alfred Marshall, born, died, school, founder of
He was born on 26 July 1842
died 13th July 1924
school: NEO classical economics
founder of neoclassical economics and principles of economics
Paul aSamuelson, born, died, school, contribution, awards
He was born on May 15, 1915,
died December 13, 2009 age 94
he went to Neo keynesian economics
his contributions are neo classical synthesis mathematical economics
economics methodology
his awards were noble Memorial prize in economic sciences
and national medal of science
Roles of economists
Economists help in the economic planning and development in the economy and undertake research and issues such as
effect of changes on tax rate
the relationship between the level of saving an investment in the economy
analyze market changes and business methods for effective decision-making
and ways of reducing development problems such as unemployment inflation in poverty
Reasons to study economics
It helps us in our work since many Jobs Require economic knowledge such as accountants
it helps us to understand why people around us behave the way they do
and it helps us make a national decisions
Career options in economics are endless because of the skills game through economics coursework which include
Abe able to analytically, critically solve complex problems,
be skilled in observation and inference from data
and be skillful and presenting ideas in fascinating writing and speech
What are some of the career paths in economics
Entrepreneurship, government, international trade, lol, marketing and retail
The three economic questions
what to produce?
The economy decides on the nature of production and the quantity of goods and services example of capital goods or consumer goods
How to produce?
This involves a combination of various methods and techniques used in produce goods and services
For whom to produce?
This involves the distribution of goods and services to consumers in the economy
What are the two broad criteria used in classifying economic systems
The degree of central planning and ownership of productive resources
The degree of central planning
Traditional economy, market economy, command economy
Traditional economic?
Is one in which the customs in culture of the people, the socialand religious traditions determine the way of life and organization of production and distribution
Market economy?
Decisions are made independently by groups and individuals in the economy
What to produce and how much is produced is decided in the market by consumers,
how to produce is decided by the business firms,
For whom to produce is determined by the ability of consumers to pay for the goods and services
Command economy?
Is an economic system where the main economic processes of resources and allocation in production is determined by a centrally planning authority
What do produce and how much to produce are determined by the central planning authority,
how to produce is also determined by the central planning authority,
for whom to produce is also determined by the central planning authority
