understanding economics Flashcards

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1
Q

where dies the word economics come from and what does it stand for

A

Ancient Greek word oikonomos
which means household( smallest form of society)

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2
Q

what is economics

A

the study of distribution and usage of resources to societies in order to satisfy unlimited wants and needs

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3
Q

according to Lionel Robbins

A

-study of human behavior
- relationship between ends and scarce, means that both have alternative uses

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4
Q

according to Paul A. Samuelson

A
  • economics is the study of how society choose
  • use finite resources that may have alternate uses
  • to create certain goods and to allocate them for use
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5
Q

means that we are not only studying the how’s and why’s of the decision we are studying the decision making aspect

A

finite resources

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6
Q

what is scarcity?

A

available resources are limited to satisfy our wants and needs

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7
Q

what are the branches of economics and what are they

A
  1. macroeconomics
    -disccuss aggregate(total economic activity) related economic processes
    -imposes assumptions that are used to make macroeconomic models
  2. microeconomics
    - economic division that examines how individual make choices on allocating scarce capital
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8
Q

what are the views of economics and what are they about

A
  1. positive economics
    -based on relevant facts and figures
    - focuses on explaining economic development
    - seeks to create a cause and effect relationship
  2. normative economics
    - based on own opinion
    - focuses on political view
    - seeks to summarize desire of individuals
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9
Q

identified the wealth of nations which are ____
-his book marked the beginning of economics as a distinct discipline

A

Adam smith

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10
Q

first major work das capital
focused on labor theory and what he viewed as capital exploitation ( capitalist workers are forced to sell their labor power for a lower price due to their lack of ownership of production means
- his goal can only be achieved by overthrowing ____

A

karl marx
social conditions

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11
Q

wrote the principle of economics
- theory neoclassical economics/marginalism was founded

what was one of his notable principle?

A

Alfred marshal

the price and output of a good is determined by both supply and demand

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12
Q

his book general theories of work OPENED UP MACROECNOMICS

A

John Maynard keynes

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13
Q

what is contemporary economics

A

also known as mathematical economic
- it uses calculus, linear statistical and computer science to analyze unintended effects

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14
Q

a simplified description of the relationship between two or more variables
- aims ti address real world problem

A

theory

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15
Q
  • used for testing theories
  • it is often used by economists rather than a theory
A
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16
Q
  • a branch that studies strategic interactions between agents and applied mathemyics
  • provides a structured social modeling approach in which decision makers communicate with the other team
A
17
Q

what are the five economic goal

A

FSEEE

macroeconomic objectives

  1. full employment
    2.stability
  2. economic growth

microeconomics objectives
4. efficiency
5. equity