WEEK 1 Flashcards
INTRODUCTION TO ECONOMICS
is a condition where there are insufficient resources to satisfy needs and wants of a population.
Scarcity
It is the result of people having “Unlimited Wants and Needs,” or always wanting something new, and having “Limited Resources.”
Scarcity
___means that there are never enough resources, or materials, to satisfy, or fulfil, the wants and needs that every person have.
Limited Resources
is the insufficiency or inadequacy of economic resources and as a result, we have to decide and choose.
Scarcity
Consumer can spend money twice.
T/F
FALSE
Producers cannot use resources again
once they are used up.
T/F
TRUE
the exchange or choosing between alternative.
Trade-off
is the value or cost of the next best forgone choice/alternative
Opportunity Cost
Economics comes from Greek words
Oikos – “______”
nomus – “______”
Oikonomia or Oikonomus – “____” “_____”
-HOUSEHOLD
-SYSTEMS OF MANAGMENT
-MANAGEMENT OF HOUSEHOLD, STATE MANAGMENT
Economics is the
art of ____
decision making
is the study of the ways that individuals and societies allocate their limited resources to satisfy their unlimited wants
Economics
can cover several areas of discussion including business, finance wealth, recession, and taxes.
Economics
is the study or discipline that aims to explain human behavior what comes to mind are the social interactions happening among people living in a certain environment.
Social Science
studies human behavior just like psychology and sociology.
Social Science
studies how individual make choice in allocating scarce resources to satisfy their unlimited wants.
Social Science
A field that applies of economic theories and principles to real-world situations with the desired aim of predicting potential outcomes.
Applied Science
Economic Resources / Factors of Production
-Land
-Labor
-Capital
-Entrepreneurship
this includes any natural resource used to produce goods and services.
Land
The income that resource owners earn in return for land resources is called
RENT.
is the effort that people contribute to the production of goods and services.
Labor
The income earned by labor resources is called
WAGES.
Think of ___ as the machinery, tools and buildings humans use to produce goods and services.
Capital
The owner of capital earns an income called
INTEREST
An ____ is a person who combines the other factors of production to earn a ___
entrepreneur
PROFIT.
Major Divisions
of Economics
Macroeconomics
Microeconomics
focuses on the actions of individual agents within the economy, like households, workers, and businesses
Microeconomics
looks at the economy as a whole.
It focuses on broad issues such as growth of production, the number of unemployed people, the inflationary increase in prices, government deficits, and levels of exports and imports.
Macroeconomics
