UNIT 1: Economics Flashcards
What is economics?
Economic is the study of how people choose to use resources to produce goods and services in order to best satisfy human demand.
What are three types of resources?
Three types of resources are: natural resources, human resources and capital.
What is the definition of “economist”?
An economist is a person who studies economics.
What is “well-being”?
Well-being means the satisfaction gained from the use of goods and services, the time shared with families and friends and so on.
What are economic relations?
They are relations between producers and consumers; buyers and sellers; investors and workers; management and labor.
What does economics study?
Economics studies how people choose to use resources to produce goods and services in order to best satisfy human demand.
What are some main ideas of Adam Smith’s theory?
The theory of A.S is Classical school. It indicates that because of their self-interest, people produce goods & wealth that benefits the whole society. A.s also emphasized the roles of markets. They could regulate themselves and produce good at maximum efficiency.
What are some main ideas of Mark’s theory?
The theory of Mark is Marxism. It indicates that the owners’ exploitation of labors leads to social unrest and class conflict. So laborers should own & control the means of production.
What are some main ideas of Keynes’s theory?
The theory of Keynes is Keynesian school. It indicates how governments use macroeconomic policy to achieve economic objective.
SUMMARY
Economics studies how people choose to use resources to produce goods & services in order to best satisfy human demand. Resources include: natural resources, human resources and capital. All resources are limited whereas human demand is unlimited, that’s why it is necessary to study economics. There are two branches of economics such as microeconomic & macroeconomic. Unit 1 also mentions three popular economists: A.S, Karl Mark, Keynes. For example: A.S’s theory is the Classical school. It says that because of their own self-interest, people produce goods & wealth that benefits the whole society. A.s also emphasized the roles of markets. They could regulate themselves and produce good at maximum efficiency.
