M1-L1: Basic Concepts of Economics Flashcards
Economics comes from the Greek word “_____” meaning household and “_____” meaning management.
Oikos, Nomos
What is the meaning of “oikos” and “nomos”?
Household Management
He defined economics as “How people end up choosing, with or without use of money, to employ scarce resources that could have alternative uses to produce various commodities among various persons and groups in society.”
Paul Samuelson (Economics)
He defined economics as “Economics concerns situations in which choices must be made about how to use limited resources, when to use them and for what purposes. Resources can be defined as the things people use to make the commodities they want.”
Roger Le Roy Miller (Economics, Today and Tomorrow)
He defined economics as “The study of choice under the condition of scarcity.”
Hall and Loeberman (Macroeconomics: Principles and Applications)
He defined economics as “A social science that studies and seeks to allocate scarce human and non-human resources among alternatives in order to satisfy unlimited human wants and desires.”
Bernardo Villegas (Guide to Economics for Filipinos)
He defined economics as “A scientific study which deals with how individuals and society make choices.”
Gerardo Sicat (Economics)
A situation wherein the amount of something available is insufficient to satisfy the desire for it.
Scarcity
The labor, capital, land, and natural resources and entrepreneurship that are used to produce goods and services.
Resources
Without limits, infinite.
Unlimited
Desires
Wants
A social science that deals with how people can organize themselves in order to allocate scarce resources in order to produce goods and services that will satisfy the unlimited and multiplying wants and needs of man.
Economics
Is the use of inputs to produce outputs.
Production
Are commodities and services that are used to produce goods and services.
Inputs
Examples of these are labor, fuel, raw materials, factory buildings, production machines, etc.
Inputs
Are the different goods and services which come out of production process.
Outputs
Is the allocation of the total product among members of the society.
Distribution
It is the use of good or service. It is the ultimate end of economic activity.
Consumption
Is concerned with government expenditures and revenues.
Public Finance
Branch of economics which deals with national databases such as national economic data, economic report, and quarterly statistical report.
Descriptive Economics
Refers to the discipline which has its objects, the national economy. It studies economics from a formal point of view from which it investigates economic reality.
Theoretical Economics
Refers to the prescriptive aspect of the economy in which a line of argument rationalizing the course of action of a government in the area of taxation and gov borrowing.
Policy Economics
Deals with the economic behavior of individual units such as consumers, firms, the owners of factors of production.
Microeconomics
Deals with the behavior of the whole economy such as unemployment, inflation, business, and the like.
Macroeconomics
Refers to the management of income, wealth, expenditures, or resources of a nation.
Macroeconomics
Most common use of economics is for the ______.
Family
At this level, anyone who knows the economic principle will be able to improve the running of the household.
Household Economics
When a person/group of persons begins to work, they come under this system of economics in their workplace.
Business Economics
In this type of economics, you deal with rent, profit, salary, etc.
Business Economics
Economic factors of problems affecting the whole nation.
National Economics
The highest stage of economic activities involving the business of one country with other countries like trades, tourism, and exchange rates.
International Economics
Economics is a _______ because it is an organized body of truth, coordinated, arranges, and systematized with references to certain general laws and principles.
Science
Economics is a ______ _______ because the subject matter is people or societies and their behavior.
Social Science
What are the five stages of historical developments of economics?
Hunting & Fishing -> Pastoral Stage -> Agricultural Stage -> Handicraft Stage -> Industrial Stage
