Lesson 1: Revisiting Economics as a Social Science

Question 1

Oikanomia

Answer 1

Household Management - a household faces many decisions like society that must decide what jobs will be done and who will do them

Question 2

Acc. Mankiw

Answer 2

economics is the study of how society manages its resources

Question 3

Hall & Leiberman

Answer 3

economics is the study of choice under scarcity

Question 4

Castillo

Answer 4

economics as the study of how man could best allocate and utilize scarce resources to satisfy his unlimited want

Question 5

Webster

Answer 5

economics as a branch of knowledge that deals with production, distribution, and consumption of goods and services

Question 6

Sicat

Answer 6

economics as a scientific study which deals with how individuals and society in general makes choices

Question 7

Scarcity

Answer 7

limited nature of society’s resources

Question 8

Economics

Answer 8

understanding how society allocates its resources under the condition of scarcity

Question 9

Economics as a social science

Answer 9

deals with the study of human’s life and how he lives with other people

Question 10

Macroeconomics

Answer 10

• economic behavior of whole economy or its aggregates
• concerned with GDP inflation, unemployment, and economic growth
• goals: economic growth, high employment, stable prices
• “employment and income analysis”

Question 11

Microeconomics

Answer 11

• individual economic behavior such as consumers, firms, and landowners
• “price theory”

Question 12

Divisions of Economics

Answer 12

production
distribution
exchange
consumption
public finance

Question 13

Production

Answer 13

• process of producing goods needed by households
• factors or productions are called input and goods and services created are output

Question 14

Distribution

Answer 14

marketing of goods and services to diff economic outlets for allocation to indiv consumers

Question 15

Exchange

Answer 15

transfer of goods and services to a person in exchange for something

Question 16

Consumption

Answer 16

proper use of economic goods

Question 17

Public Finance

Answer 17

• activities of the government regarding taxation, borrowings, and expenditures
• fair distribution of public resources

Question 18

Economic Resources

Answer 18

• factors of production
• land, labor, capital, entrepreneurship

Question 19

Physical Capital

Answer 19

machinery and equipment

Question 20

Human Capital

Answer 20

skills and knowledge possessed by workers

Question 21

Entrepreneurship

Answer 21

ability and willingness to combine resources into a productive enterprise