Introduction to Applied Economics

This is the study of the allocation of scarce resources to meet unlimited human wants.

Economics came from the greek word, "oikonomia" which means

According to him, economics is the proper allocation and efficient use of available resources for the maximum satisfaction of human wants.

• Roger Le Roy Miller

• Nordhaus

• Fajardo

• Samuelson

According to him, economics is a science of choice.

• Fajardo

• Nordhaus

• Hall and Loeberman

• Samuelson

It is the condition in which our wants are greater than our limited resources.

This is the study of small economic units such as individuals, firms, and industries (competitive markets, labor markets, personal decision making, etc.)

Study of the large economy as a whole or in its basic subdivisions (National Economic Growth, Government Spending, Inflation, Unemployment, etc.)

The benefit you give up because you choose to take one action in favor of another.

• Comparative advantage

• Absolute advantage

• Opportunity cost

• Trade-off

Having the ability or capacity to produce more output compared to another entity.

• Absolute Advantage

• Comparative Advantage

• Opportunity Cost

• trade-off

Resources are generally scares and human wants tend to be unlimited =big problems. Explain briefly but substantially.