ECON CHAP 1&2
Cards (47)
- Study of human efforts to satisfy what appears to be unlimited and competing wants through careful use of relatively scare resources
- Deals witu the behavior of people as they cope with the fundamental problem of scarcity. No scientific experiment, using real life scenarios
- Based on realities that can be proved/disaproved, supported, or rejected. FACTS
- Represents a opinion, cannot approved/disproved, nor shown to be true or fasle by reference to facts
- Greek word of "mikro" means small, stufies economic behavior of individuals and firms. Law of supply and demand. Analyze demand and supply of goods and labor. Study individuals income and prices
- Greek word "makro" means large, studies the performance of the economy as a whole. It is aggregate or country level. Focuses on the national economy. Studies national income and overall price level. Analyzes total employment in the economy. Analyzes aggregate demand and aggregate supply
- The basic requirements for survival
- Something that is desired, means of expressing a need
- It is a tangible commodity
- Inteded for final use by individual
- Used to produce other goods and services such as machinery and tools
- as furniture, cars, electronics
- Such as Public museum and libraries
- A work that is performed for someone, cannot be touched or felt
- Gift of nature or natural resources not created by human efforts
- Tools, equipment, factories used in the production of goods and services
- All people with their efforts, abilities, and skills
- Innovators responsible for much of the change in the economy. They are risk taker in search of profit
- Describes as limited quantities of resources to meet the unlimited wants
- According to him the four factors of production provide the means for society to produce and distribute its good and services
- It is the study of economics relation to real life situations. Application of economic principles and theories to actual situations, trying to predict what the outcomes. Observe how theories work in practice
- Study the economy as a whole
- Analyzing individual consumers and companies
- A french economist and businessman, who wrote the "general principles of political economy" to "ascertain the rule of action of any combination of circumstances presented to us"
- Jean-Baptiste Say is famous for his law called
- A british political economist, philosopher, and civil servant. Principles of political economy with some of their applications to soscial philosophy
- All about thinking things up
- All about trying things out
- Allows people to make informed Forecasts about future trends
- Provides the student with a broader perspective on the application of economic theory to real world issues but less knowledge of core economic theory
- Well substantiated explanation of some aspects of the natural world
- Defined as a theory on commercial activities such as production and consumptions of goods
- What are the two early economic theories?
- An English cleric and scholar, examined the relationship between population growth and resources
- A Scottish economist and philosopher, pioneer in political economy and modern economics. His best known work "An inquiry into the nature and cause of the wealth of the nations" or "the wealth of nations" published in 1776
- greater wealth of the nation
- One of smith's most important contributions deals with the competition in the marketplace. Competitive conditions
- The weath of nation was ridiculed by aristocracy in parliament. No government intervention in economic affairs
- A modern economic theories states that increasing consumption of goods is economically beneficial
- Advocates government monetary and fiscal programs to stimulate business activity and increase employment. Popularized by John Maynard Keynes