Introduction to Economics Part 2

This type of good does not have a price

• Free good

• Economic good

• Merit good

• Demerit good

Which is NOT one of the fundamental economic question

• What to produce

• How to produce

• When to produce

• For whom to produce

Because ALL resources are limited – WE MUST MAKE _______

• Buy items

• Think twice

• Make choices

• Economize

Choices arise as a result of:

• Unlimited resources

• Limited wants

• Scarcity

• Economics

Economics is derived from a Greek word ‘Oikonomikos’ that means

• Home management

• Economy management

• Country management

• Scarcity

Economics is:

• The study of how we make decisions about using scarce resources

• The study of the economy

• The study of governments

• The study of money and how it is used in the economy

The inputs used in the production of goods and services

• Products

• Productivity

• Resources

• Data

This branch of economics deals with how individuals make economic decisions

• Microeconomics

• Macroeconomics

• Nanoeconomics

• Econometrics

Economists assume:

• That people are easily manipulated

• People love low prices above anything else

• People are rational

• People weigh all the benefits and cost before deciding

Where government decides the three economic questions:

• Traditional economy

• Command or Planned economy

• Market economy

• Subsistence economy