Introduction to Economics

Front

What is Economics?

Back

The study of how individuals, firms, and governments allocate scarce resources to satisfy unlimited wants.

Front

Define Scarcity.

Back

Limited resources (time, money, raw materials, labor).

Front

What is Choice in economics?

Back

Because resources are scarce, people must decide what to use them for.

Front

What are Trade-offs?

Back

Every choice involves giving up something else.

Front

What is Opportunity Cost?

Back

The next best alternative forgone when making a decision.

Front

Give an example of Opportunity Cost.

Back

Choosing to study instead of working = lost wages are the opportunity cost.

Front

What is Microeconomics?

Back

Studies individual decision-making units (households, firms, markets).

Front

What is Macroeconomics?

Back

Studies the entire economy (GDP, unemployment, inflation).

Front

What is Positive Economics?

Back

Describes 'what is' (factual, testable).

Front

What is Normative Economics?

Back

Describes 'what ought to be' (value-based, opinion).