Unit 1, L1: Economics, Scarcity, and Choices

Question 1

What is Economics? (Etymological Definition)

Answer 1

Oikonomia

• greek word which translates to management and household

Question 2

What is Economics?
(Scholarly Definition)

Answer 2

Economics concerns situations in which choices must be made about how to use limited resources when to use them, and for what purpose

Short sum: Economics is about which and how choices are meant to be made and for what purpose

Question 3

Two Divisions of Economics

Answer 3

Microeconomics and Macroeconomics

Question 4

Microeconomics

Answer 4

Micro = small

decisions about specific individuals

Question 5

Macroeconomics

Answer 5

Macro = large

economic growth for a country or a nation

Question 6

Scarcity

Answer 6

The fundamental economics problem.

Question 7

Relative Scarcity

Answer 7

Lack of resources but have plently for others

Question 8

Choices

Answer 8

Trade off and Opportunity Cost

Question 9

Opportunity cost

Answer 9

The cost of the choice not taken

Question 10

Trade off

Answer 10

Picking one thing from all other possibilities

Question 11

Basic Economic Questions

Answer 11

What to produce?
How to produce?
How much to produce?
For whom to produce?
How to produce more overtime?

Question 12

Economics and other disciplines

Answer 12

• It uses logic and mathematics
• It involves history
• It emphasizes science and technology

Question 13

Why is it important to study economics?

Answer 13

for the future, budgeting, and awareness for world issues