Lesson 1 Flashcards
Major Divisions of Economics
Production
Public Finance
Distribution
Consumption
Exchange
Refers to the process of producing of creating goods needed by the households to satisfy their needs
Production
Factors of production
Inputs
Goods and services
Outputs
Refers to the marketing of goods and services to different economic outlets
Distribution
Refers to the process of transferring
goods and services to a person in return for something present medium of _______-money
Exchange
Refers to the proper utilization of economic goods. However, goods and services could not be utilized unless you pay for it. Hence, consumption could also be spending money for goods and services
Consumption
Pertains to the activities of the govemment regarding taxation, borrowings and
expenditures. It deals with the efficient use and fair distribution of public resources.
Public Finance
is a discipline that applies existing scientific knowledge to develop more practical applications, like technology and invention. It can also statistics and probability theory.
Applied Science
is an applied science because it deals with analysis on how members other on the creation and utilization of wealth. What makes it an applied science theories through testing, mainly using data from the past.
Economics
Its primary aim is to increase human welfare by the investigation and analysis of economic problems of the real world.
ECONOMICS AS AN APPLIED SCIENCE
is the application of economic theories and models to the data to solve real-world issues.
Applied Economics
is the study of social behavior guiding in the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society.
Economics
because it is an organized body of truth, coordinated, arranged and systematized with reference to certain general laws and principles.
Economics as a science
Human Geography Linguistics
Economics Communication
Political Science Anthropology
Sociology
Psychology
Criminology
Law
Development Studies Cultural Studies
Social Science
Economics In a Process
Unlimited wants
Scarcity
Make Choices
is the condition in which our needs and wants are greater than our limited resources.
Scarcity
The things used to make other goods.
Resources
Economic Resources
Land
Labor
Capital
Foreign exchange
Is considered an economic resource because it has a price attached to it.
Land
Also called “human resources” refers to all human efforts, be it mental or physical, that help to produce satisfying goods and services.
Labor
Can represent the monetary resources use to purchase natural resources.
Capital
French word which means “enterpriser” organizer and coordinator of other factors of production: land, labor and capital.
Entrepreneur
Refers to the dollar and dollar reserves that the economy has.
International medium - dollar
Foreign Exchange
Are the things we can’t live without.
Needs
Are the things we can live without.
Wants
consist of all the options that we give up when we make a choice.
Trade- offs
making the best possible decision is to minimize your O______ C____ by selecting the option that gives you the largest benefit.
Opportunity Cost
refers to the total number of goods or services available for sale. These goods or services are produced by making use of the factors of production consisting of land, labor and capital.
Supply
refers to the aggregate or the totality of the needs and wants of the customers.
Demand
(From the Greek word mikros, meaning “small”) > Takes a closer view on the behavior of individual markets work.
Microeconomics
(From the Greek word makros, meaning. “Large”) Deals with the problem of the economy as a whole.
Macroeconomics
Ex. Microeconomics
•Consumer
• Producer
• Firm
• Industry
Ex. Macroeconomics
•National Income
•Population
• Poverty
•Unemployment
