MAIN BRANCHES OF ECONOMICS Flashcards
deals with the behavior of individual components as an economic agent such as household, consumer, worker, firm, and owner of production
microeconomics
deals with the behavior of economy as a whole with the view to understand the interaction between economic aggregates such as employment, inflation, and national income
macroeconomics
these are the basic categories of inputs used to produce goods and services and are also called factors of production
economic resources
category of resources that refers to all natural resources used in the production process
land
mineral and oil deposits, water, fertile soil, air, rain, wildfire, and forest are examples of what kind of resources
land
refers to all physical and mental efforts that people make available for production
labor (human resources)
workers, engineers, teacher, etc. are examples of what kind of resources?
labor
refers to all investment goods used to produce other goods and services
capital
buildings, equipment, machines, roads, and even software are examples of what kind of resources?
capital
these are special ability of an individual needed to develop and produce products and services like organizational and managerial skills.
entrepreneurship
this means not enough supply to meet human needs and wants
scarcity
it is a condition in which human wants are often greater than the available supply
scarcity
what are the two types of scarcity?
relative and absolute
type of scarcity that is based on circumstances
relative
scarce that need to rely on import
absolute
