What Is Economics 1. Flashcards
Economics
The study of how people satisfy their wants/needs by the choices they make
Microeconomics
The study of households, companies, and their individual markets
Macroeconomics
The behavior of entire economies (nations) like inflation, unemployment
Wants
=desires, go above and beyond for normally
Needs
=for survival, go above and beyond for with natural disasters
Goods
Tangible items that can be used, stored, evaluated, taken home or consumed. Vary from appliances, clothing, vehicles
Services
Intangible properties, services received; like doctor, hairdresser
Non durable goods
Expires, food, clothes, shoes
Durable goods
Last 10+ years; car, desk, table, machinery in homes
Capita goods
Used to create other goods, machinery in businesses. Like building/oven in bakery
Consumers and producers…
Make economic decisions
Basic economic problems
Scarcity, paradox of value
Scarcity
Unlimited wants/needs, limited resources. Forces people to make choices in how to allocate their resources effectively to get what they want
Paradox of value
Apparent contradiction between high value of a non essential item and low value of an essential item
