Module 1 Flashcards
refers to the study of how individuals, businesses, governments, and societies allocate and manage resources to satisfy human wants and needs
Economics
Also known as factors of production, are the resources used to produced goods and services
Economic Resources
Refers to the limitation of resources
Scarcity
refers to products or services which are not available in the required quantity
Shortage
is a social science which analyzes the production, consumption and distribution of goods and services.
Economics
Understanding the economy as a system
Microeconomics
Examines the economy as a whole.
Macroeconomics
Analyzes the flow:of goods between nations
International Economics
Economic theorvts the field in which the models are derived and applied to cument problems.
Theories
This is concerned with international banking, monetary exchange rates, tariffs and the effects of different economic and governmental systems.
International Economics
The goal of economists in developing theories is that they require less information and lead to more accurate results
Theory
Economic history is the field which focuses on economic theories and writings of the past
History
Many decisions of today are made based on the theories and ideas of former economists and scholars
History
is concerned with describing and explaining economic phenomena as they are, without making value judgments or expressing opinions.
Positive Economics
It involves making value judgments and recommendations about what ought to be done expressing opinions about desirable economic policies.
Normative Economics
Focuses on values and preferences
Normative Economics
Focuses on facts
Positive Economics
Study of the relationship of Positive and
Normative Economics.
Applied Economics
refers to the way in which the decisions about producing goods and services are made within a given society and the rules that govern distribution of those. Who decides what to produce and how? Who owns the resources? How are the produced goods to be allocated to their end users?
Economic System
consumers’ behavior drives the production
Market Economy